Despite a judicial brake in the form of an illegal-ruling decision by the U.S. Supreme Court, President Donald Trump played a hardball move with a "15% additional tariff," prompting the European Union (EU) to signal the first-ever activation of a "trade bazooka."
France Minister of Trade Nicolas Forissier said in an interview with the Financial Times (FT) on the 21st local time, "The EU must take a united approach and has all the appropriate tools necessary." In particular, Minister Forissier strongly hinted at the possibility of activating the so-called "trade bazooka," the Anti-Coercion Instrument (ACI).
The ACI is a powerful tool capable of wide-ranging retaliation against economic coercion by third countries, including blocking access to financial markets and restricting intellectual property rights. It was discussed after President Trump's reciprocal tariff announcement last year and during the attempt to annex Greenland early this year, but it has never actually been triggered. If the trade bazooka is activated this time, all-out pressure is expected to materialize targeting U.S. big tech corporations, including ▲ export controls ▲ service tariff imposition ▲ exclusion from participation in EU public procurement projects. Separately, the EU is also reviewing reactivating a previously suspended retaliatory tariff package on U.S. products worth 90 billion euros (about 153 trillion won).
Earlier, on the 20th, the U.S. Supreme Court issued a final illegal ruling on the Trump administration's reciprocal tariff policy pushed under the banner of resolving the trade deficit and revitalizing manufacturing. But immediately after the ruling, President Trump opted for a head-on push, abruptly raising the base tariff from the existing 10% to 15%. The new tariff policy is set to take effect starting on the 24th.
In response, Germany Chancellor Friedrich Merz said, "Tariffs are an EU common issue, not for individual countries," and is set to visit Washington, D.C., a week later. Bernd Lange, chair of the European Parliament's Committee on International Trade, also warned, "The era of unlimited and arbitrary tariffs may be coming to an end." The European Parliament convened an emergency meeting immediately after the ruling and began discussing a plan to fully postpone implementation of trade agreements concluded with the United States.
As President Trump neutralized even a judicial ruling and continued a tariff surge, the global trade environment descended into extreme turmoil. Experts worry that if the EU actually triggers the ACI, a transatlantic trade war could spiral out of control.