The German and French finance ministers said that the EU should be able to use all tools at its disposal if US president Donald Trump raises tariffs on European goods by 10% on 1 February.
German and French Finance Ministers Lars Klingbeil and Roland Lescure say they will push European partners to use all tools at their disposal, such as anti-coercion measures, if United States President Donald Trump makes good on his threat to increase tariffs on European goods by 10%.
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The two ministers told journalists on Monday that they will make everything in their power to prevent these tariffs from being applied, but that if the US proceeds with its threat, the European Union must act accordingly.
Lescure called Trump's pressure "unacceptable" and said that tariffs should not be used as a weapon.
"Europe has to make sure that the threats that have been imposed don’t become reality," he said in Brussels. "We need to show that we’re willing to use all the instruments at our disposal, whether they are tariffs, trade agreements, or anti-coercion measures.”
Klingbel said that the severity of the situation must not be underestimated.
"Now it is time for our American friends to say 'we do not want escalation'. We also want many companies to avoid an escalation. But if President Trump does what he announced on February 1, then we have to react consciously."
Over the weekend, Trump said the US will increase tariffs on European goods by 10% if the bloc continues to oppose his efforts to take control of Greenland.
Among the tools the EU can use there is the Anti-Coercion Instrument, which enables the bloc to punish unfriendly states for economic coercion by restricting them from participating in public procurement tenders, limiting trade licenses, and even shutting off access to the single market.
Adopted in 2023, the instrument has never been used, but the US president's escalating threats over the weekend prompted calls for the instrument to be deployed, including from French President Emmanuel Macron.
Former senior EU officials, including former Commissioners Paolo Gentiloni and Cecilia Malmström, have also backed deploying the instrument.