In December 2021, when China moved to freeze trade relations with Lithuania after a diplomatic spat involving the opening of a “Taiwanese” representative office in the Lithuanian capital of Vilnius, European leaders sought leverage against Beijing’s use of what they described as economic coercion. The result was the adoption of a legal tool in 2023 designed to fight fire with fire: an “anti-coercion” instrument, or ACI, that gives the European Commission the authority to impose countermeasures to deter threats, such as those made China against Lithuania.
Now, amid fresh tension between the Trump administration and European leaders over Greenland, the EU is threatening to deploy its ACI, the so-called “trade bazooka,” to stop the United States from exerting economic pressure to achieve a political objective.
“It is a pretty new policy instrument for the EU,” said Mai’a Cross, dean’s professor of political science, international affairs and diplomacy at Northeastern University, and an expert on international relations, space diplomacy and European security. She said it would be the first time Europe would look to activate the policy since its adoption in 2023.
