The Financial Times reports that the EU is preparing to hit Silicon Valley in a potential retaliation if Donald Trump carries out his threats to impose tariffs on the bloc, marking the first activation of a Brussels “bazooka” that could bring services into a trade conflict.
The European Commission intends to employ its “anti-coercion instrument” in a potential clash with Washington which would enable the EU to target US service sectors like Big Tech.
One official noted that “all options are on the table” and highlighted the ACI as the most forceful response possible without violating international law. It also allows the EU to block foreign direct investment or restrict market access for banking, insurance and other financial services firms.
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If that happens, the playbook could be the same: fading the negative reaction in expectations of negotiations and a pause/delay of tariffs.