ET 07:42

Macron Signals EU May Deploy Anti-Coercion Tool Against U.S. Over Tariff Threats

French President Emmanuel Macron warned on January 21, 2026, that escalating U.S. trade threats could force the European Union to invoke its Anti-Coercion Instrument (ACI) for the first time against Washington. The ACI, established in 2021, enables the bloc to impose sanctions on entities deemed to exert undue pressure, including restricting market access, blocking public tenders, and limiting investment. The EU faces mounting tension following President Donald Trump’s aggressive stance on Greenland. While only France has publicly backed using the mechanism, Macron emphasized its potency during a speech at Davos, calling it “a powerful instrument” needed in today’s “tough environment.” EU-U.S. trade in goods and services totaled €1.7 trillion ($2 trillion) in 2024, averaging €4.6 billion daily. Key EU exports include pharmaceuticals, automobiles, aircraft, chemicals, medical devices, and wine. Activation of the ACI would require at least six months and is intended primarily as a deterrent. An emergency summit of EU leaders is scheduled in Brussels on January 23, 2026, to address the crisis.

EditorTan Wei Jie