“It’s clear that a line has been drawn and enough is enough,” said one diplomat with knowledge of Sunday’s talks. “But at the moment we are discussing options — if Trump’s tariffs are imposed, then then we will be discussing not what options there are but which options to use.”
The €93 billion in retaliatory tariffs would be a reactivation of measures that the EU put on hold after the signing of a trade deal with the U.S. in July. Such a move could be taken “very quickly,” compared to some of the other options being discussed, according to a second EU diplomat briefed on the talks.
An alternative would be to use the EU’s Anti-Coercion Instrument (ACI), the EU’s “trade bazooka,” designed to penalize countries that use their markets as a tool for geopolitical blackmail, several officials said. This is a stronger measure and would come up against some concern from more cautious members of the bloc. Governments did not ask the European Commission to move forward with the deployment of the tool at this stage, according to three diplomats.
Before Sunday’s discussions, French President Emmanuel Macron called on Brussels to activate the ACI, which includes restrictions on foreign direct investment and intellectual property protections. Two diplomats said France’s envoy raised the prospect in the room.
Macron’s office said in a statement issued while the ambassadors were meeting that the president had spoken with Commission President Ursula von der Leyen and NATO chief Mark Rutte, and reaffirmed the importance of a “firm, united, and coordinated European response through the activation of the anti-coercion instrument should the United States carry out its tariff threat.”
“There are many ways forward,” said an EU diplomat. “There are other diplomatic and economic possibilities to act. Some can be spoken about publicly, others can’t.”