Official Brussels is actively preparing for a trade war with the United States if the new President Donald Trump begins to implement his threats towards the European Union. Silicon Valley may be the first to be hit by the EU - a tough tool, which the bloc calls a "bazooka", may be used against it.
Points of attention
- The European Union can use the “counter-coercion tool” to stop Trump.
- It is the “bazooka” that will become Brussels' harshest reaction to the US decision.
The EU is determined to fight back against Trump
As journalists managed to learn from their insiders, the European Commission, led by Ursula von der Leyen, is ready to use its so-called "anti-coercion instrument" (ACI).
What is important to understand is that it was created during Donald Trump's first term, and then was used as a deterrent to China.
The specified instrument, dubbed the “bazooka” in the bloc, allows official Brussels to impose restrictions on trade in services if it recognizes that a country is using tariffs on goods to force a change in policy.
Anonymous sources warn that it is the ACI that will allow the European Union to “attack” large US technology companies (Big Tech).
According to another insider, "all options are on the table" at the moment, as the EU is not going to make concessions to Washington.
It is the "bazooka" that will become Brussels' toughest reaction to Donald Trump's actions — this tool will operate without violating international law.
