France pushes for the use of commercial “bazooka”, an ultimate weapon never used yet by Brussels

The European Union is preparing to target the American services sector, including “Tech”, in the event of the failure of commercial negotiations with Washington on customs duties, European diplomats said on Thursday, July 17 at AFP. However, France is pressing to go even further using “the anti-coercion instrument” which could further ignite trade war.

The tone rises on both sides of the Atlantic. Nevertheless, The European Union is preparing to target the American services sector. In addition, including “Tech”, in the event of the failure of commercial negotiations with Washington on customs duties, European diplomats said on Thursday, July 17 at AFP.

Donald Trump took the Europeans in short last weekend by decreeing customs duties of 30% on all imports from the. Therefore, EU from August 1. Nevertheless, Europe still has the hope of finding a negotiated solution with the United States before this france pushes use commercial “bazooka”, deadline. For example, but prepares its response otherwise. Meanwhile, Plans, cars, bourbon …: she has already established a list of products that she could tax.

Progressive or firm response? – France pushes use commercial "bazooka",

But the EU also plans to target American services. Consequently, including tech and financial services, likely to be subject to restrictions for example on access to European public contracts. However, A diplomat explains that the EU could retaliate in stages. Nevertheless, starting by gradually taxing American products, before moving on to services if necessary. When another ensures that the EU has no choice but to respond in a firm way.

EU member states wish to keep all the options open. but support the committee attempts to reach an agreement before initiating reprisals. EU’s main commercial negotiator. Maros Sefcovic, went to Washington on Wednesday July 16 for talks with its American counterparts, but the commission did not give details on these meetings.

Questions remain france pushes use commercial “bazooka”, on Europe’s desire to initiate a trade conflict with Trump if it imposes many customs duties of 30%. on August 1.

France pushes Brussels to adopt a firm position. to the point of deploying its most powerful commercial tool, “the anti-coercion instrument”, if negotiations with the United States fail. Nicknamed “Bazooka”, this tool was thought of as a deterrent instrument to activate after exhaustion of diplomatic roads. In particular. it would allow the freezing of access to European public contracts or the blocking of certain investments, but requires several months to enter into force.

Benjamin Haddad. the French Minister for European Affairs, said this week to Bloomberg that Brussels’s response should include the possibility of using this tool.

“In this negotiation, you must show strength, strength, unity and determination,” he said. “We can go further” than the countermeasures announced by the European Commission targeting nearly 100 billion euros ($ 116 billion) for US france pushes use commercial “bazooka”, trade.

The anti-coercion instrument

The “bazooka” in question is therefore the anti-coercion instrument (ACI). a European regulation adopted in 2024 which allows the European Union to react when third countries try to force it politically or economically. This regulation has been adopted because the EU has been faced in recent years with situations of economic coercion. Especially when China has exerted commercial pressure on Lithuania after it has strengthened its links with Taiwan. Or when Russia has used economic levers and energy to try to influence European political decisions.

If a country uses economic threats. requires commercial sanctions to influence the political decisions of the EU or its Member States, the EU can retaliate. ACI is based on EU’s commercial skills (article 207 of the TFEU). It allows a rapid, targeted and proportionate reaction.

ACI is not a tax or a tax law. It can be used to impose trade measures on france pushes use commercial “bazooka”, third -party companies if their government exerts unjustified pressure on. the EU – but it is not limited to digital services.

For example. if a country threatens to tax European companies or block their access to the market because of an EU decision (such as a digital tax), the EU could use the ACI to reply, including targeting the digital services of the country in question.

A wide range of sanctions

It could prohibit or restrict the importation of certain products (agricultural, electronic, textiles, etc.), suspend authorization to exercise certain companies, limit foreign investments or restrict access to public contracts.

In short. a wide range of sanctions that would be assimilated to the use of a commercial deterrent similar to the atomic weapon in the military. The very first use of the ACI would probably cause an even larger transatlantic trade war.

Donald Trump has also warned that reprisals against American interests would france pushes use commercial “bazooka”, only invite his administration to adopt harder tactics.

Ursula von der Leyen, however, wanted to calm French ardor. The president of the European Commission told journalists on Sunday that “ACI was created for exceptional situations”. that “we are not there yet”.