The European Union appears to be considering whether to deploy its "Anti-Coercion Instrument" characterized as a "nuclear option" to try to deter trade disputes — as the threat of a 30% tariff on EU imports looms large.

A number of EU member states, including France and Germany, are reportedly considering using "anti-coercion" measures targeting the U.S. if the bloc cannot reach a trade deal with U.S. President Donald Trump, EU diplomats told Reuters this week.

The measures could see the EU restrict U.S. suppliers' access to the EU market, excluding them from participation in public tenders in the bloc, as well as putting export and import restrictions on goods and services, and limits on foreign direct investment in the region.

The time to deploy what's been seen as the EU's "trade bazooka" could be approaching too, as Trump's trade dispute with the bloc comes to a head.

As things stand, the White House says it will impose a 30% tariff on EU imports to the U.S. on Aug.1 if no trade deal is reached before then. It has said the deadline is fixed but noted that trade negotiations could continue after that date.

Relations between the U.S. and EU are at a low ebb after Trump has repeatedly accused the EU of unfair trading practices because it has run a persistent trade surplus when it comes to the exchange of goods.

European Council data shows total trade between the EU and U.S. amounted to 1.68 trillion euros ($1.97 trillion) in 2024 but while the EU ran a trade surplus in goods, it recorded a deficit in services with the U.S. When both goods and services were taken into account, the bloc had a surplus of around 50 billion euros last year.

As Trump's latest 30% tariff threat looms, the EU has been considering its options, including counter-tariffs targeting U.S. imports, as well as its potentially formidable Anti-Coercion Instrument (ACI), which was created in 2023 but has never been used by the EU before.

Source: CNBC