What is the EU's anti-coercion 'bazooka' it could use against US?

"Trump stunned Europe on Saturday when he vowed to slap EU members Denmark, Finland, France, Germany, the Netherlands, and Sweden -- and non-members Britain and Norway -- with levies of up to 25 percent unless the Danish territory is ceded to the United States. French President Emmanuel Macron has raised the prospect of hitting back with the EU's trade weapon, that was established in 2023 but has never been activated."

"The EU defines coercion as a third country "applying -- or threatening to apply -- measures affecting trade or investment", thereby interfering "with the legitimate sovereign choices" of the EU and member states. What dos the instrument do?The armoury allows the EU to take measures such as import and export restrictions on goods and services in its single market of 450 million people."

"The EU last year threatened to use the weapon during difficult trade negotiations with Trump to avoid steep levies but the two sides struck a deal. A major target could be American tech giants since the United States has a services surplus with the EU. Brussels previously drew up a list of US services to potentially target. The instrument's creation came after Lithuania accused China of banning its exports because Vilnius allowed a Taiwanese diplomatic representation to be opened on its soil in 2021."

Donald Trump threatened tariffs up to 25% on Denmark, Finland, France, Germany, the Netherlands, Sweden, Britain and Norway unless Denmark's territory is ceded to the United States. European leaders, including Emmanuel Macron and Valerie Hayer, signalled use of an EU anti-coercion trade instrument established in 2023. The instrument allows import and export restrictions and limits on American companies' access to public procurement in the EU's single market of 450 million people. The EU defines coercion as third-country measures affecting trade or investment that interfere with sovereign choices. Activation requires approval by 55% of member countries representing 65% of the EU population.

Read at The Local Germany