00:00The European Union is holding off from the anti-coercion instrument, also known as its
00:08so-called trade bazooka, in retaliation for US President Donald Trump's tariff threats over
00:13Greenland. During an urgent meeting in Brussels on Sunday, EU leaders said they want to first
00:19prioritize dialogue and diplomacy with the US. The bazooka is a powerful tool adopted in 2023
00:27that allows the EU to punish unfriendly countries for economic blackmail by limiting trade licenses
00:33and shutting off access to the single market. The EU could, however, revive a €93 billion
00:41retaliation package targeting US products if Trump follows through on his threats to slap
00:47an additional 10% tariff on eight European countries. The package was prepared last year
00:53ahead of an EU-US trade deal that set a baseline tariff of 15% on most EU exports to the US,
01:00while slashing duties on many US industrial goods to zero.
01:05The UK, Denmark, Finland, France, Germany, the Netherlands, Norway and Sweden have issued a
01:12joint statement saying Trump's Greenland threats risk a dangerous downward spiral
01:16and undermine transatlantic relations. European Council President Antonio Costa has convened
01:23an extraordinary summit of EU leaders in the coming days.
Comments