Explainer

Why ‘Anti-Coercion’ Tool Is the EU’s Trade Weapon of Last Resort

The ACI is the EU’s strongest tool to retaliate against economic or trade duress by a third country.Photographer: Angel Garcia/Bloomberg

For the third time in less than a year, the European Union is weighing whether to use its most powerful economic weapon — the anti-coercion instrument — in a dispute with a major trading partner.

US President Donald Trump’s threat to impose tariffs on goods from European nations unless he is allowed to buy Greenland is being seen as a step too far by some EU leaders, and a signal that efforts to accommodate his demands through negotiations have got them nowhere.