What is the ‘trade bazooka’ the EU may use against Trump’s Greenland threats?

South China Morning Post Political StrategyNews ReportEN 1 min read 100% complete by Associated PressJanuary 21, 2026 at 07:41 PM

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The European Union is considering countermeasures against the United States in response to perceived threats from President Trump regarding Greenland. The EU's primary tool is the Anti-Coercion Instrument, often called the "trade bazooka," which allows the bloc to restrict trade and investment from countries exerting undue pressure on EU members. This instrument includes measures like tariffs, barring access to public tenders, and limiting foreign direct investment. If fully implemented, the "trade bazooka" could significantly restrict access to the EU's market, potentially costing US companies billions of dollars. While the EU has the tool available, most of the 27 member nations remain skeptical about using it.

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Economic Impact

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Key Claims (5)

AI-Extracted

The Anti-Coercion Instrument includes measures for restricting trade and investment.

factual100% confidence

The 'trade bazooka' is the bloc’s Anti-Coercion Instrument.

factual100% confidence

The EU is readying countermeasures against the United States due to Trump's threats over Greenland.

factual90% confidence

The measures could include curtailing the export and import of goods and services.

factual80% confidence

The bazooka could inflict billions of dollars of losses on US companies.

prediction60% confidence

Claims are automatically extracted and should be independently verified. Attribution indicates the stated source of the claim.

Key Entities & Roles

Key Player Opposition Context

France 30% Emmanuel Macron 50% Greenland 60% United States ×280% Donald Trump ×390% European Union ×595%

Keywords

trade bazooka 100% european union 90% trade countermeasures 80% tariffs 70% anti-coercion instrument 70% trade and investment 60% us goods 60% economic pressure 50% international trade 40%