France to request EU activate anti-coercion instrument after Trump's 10% tariff on eight European nations

France is pushing for the European Union to deploy its strongest trade weapon after US President Donald Trump announced new tariffs on European nations linked to his demand to purchase Greenland.

Emmanuel Macron plans to ask the EU to activate its anti-coercion instrument following Trump’s announcement of a 10% tariff on products from eight European nations, including France, starting February 1. A person close to the French president, speaking anonymously due to government protocols, confirmed Macron would submit this request on France’s behalf. Macron, who called the tariff threat “unacceptable” on Saturday, has been reaching out to other European leaders about the issue.

Trade deal approval now in question

Trump posted on social media that the tariff rate would jump to 25% in June unless a deal is made for the “Complete and Total purchase of Greenland.” The declaration has thrown existing trade agreements between Washington and Brussels into doubt.

The person familiar with Macron’s position said Trump’s decision to link tariffs to Greenland purchases raises serious questions about a trade agreement finalized between the EU and the US last year. That agreement has been partially put into effect but still requires parliamentary approval, which now appears unlikely to proceed.

EU ambassadors from member nations are scheduled to meet on Sunday to determine how the bloc will respond, according to another person with knowledge of the situation.

Germany’s SPD parliamentary group, which forms part of Chancellor Friedrich Merz’s governing coalition, urged the European Commission to move quickly and develop “concrete countermeasures” against the United States. A person familiar with German planning said the government is reviewing all possible responses but hasn’t settled on specific actions yet.

Manfred Weber, who leads the European People’s Party, the biggest political faction in the European Parliament, declared Saturday that approving the EU-US trade deal is no longer feasible.

Powerful tool remains unused

Finnish Prime Minister Petteri Orpo issued a warning that the European Union “has the means to respond,” though he expressed hope to avoid that outcome. In comments to YLE radio, Orpo said he has called for an emergency European Council meeting to align and craft a unified approach among European nations and Denmark.

The anti-coercion instrument has never been activated since its creation. It was built mainly to discourage aggressive trade actions and, when necessary, to counter intentional coercive moves from other countries that use trade policies to influence EU or member state decisions.

Tariffs, new taxes on tech firms, or particular restrictions on investments within the EU are examples of potential acts under the instrument. Other options include preventing businesses from competing for government contracts throughout Europe or limiting access to specific EU market sectors.

Last year, Macron thought about using the anti-coercion tool, but he changed his mind when the EU and the US were in protracted talks over planned tariffs.

Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program