Anti-Coercion Instrument eyes $3.5B after US tariff ruling

Yes, EU can retaliate via ACI, tariffs, procurement bans

France’s position is that the European Union has actionable tools to respond if U.S. tariffs are revived or expanded. The centerpieces include the Anti-Coercion Instrument (ACI), targeted customs duties, and the option to bar certain suppliers from public tenders.

In operational terms, the toolkit can reach beyond goods. It can be configured to include export controls, service-sector measures, and procurement exclusions, designed to be proportionate and adjustable to the scale of any U.S. action.

What the Anti-Coercion Instrument allows and limits

France has pushed the ACI to the forefront, with options that include new tariffs on U.S. goods, export controls, service-sector charges, and the exclusion of U.S. firms from EU public procurement, as reported by the Financial Times. The instrument’s value is its flexibility: it can target sectors or measures most closely linked to the coercive act while preserving room to de-escalate if conditions change.

At the same time, EU leaders have emphasized proportionality and risk management, with specific countermeasures in drafting and calibrated to protect EU consumers and firms, as reported by Fortune. That discussion includes whether to focus on goods alone or keep services and technology on the table, reflecting member-state caution about over-escalation.

French officials have framed the posture as defensive and rules-based rather than punitive. “Should it become necessary, the EU has the appropriate instruments at its disposal,” said Nicolas Forissier, France’s trade minister.

Immediate implications for EU-U.S. trade and businesses

For goods trade, companies face potential re-pricing of transatlantic lanes and origin reviews if tariffs are activated or expanded. The EU has previously considered a 25% tariff on about $3.5 billion of U.S. imports if U.S. measures proceeded, according to AOL.

Analysts are already mapping scenarios that combine U.S. actions and reciprocal measures. Based on data from The Budget Lab, researchers estimate the effects of U.S. tariffs and foreign retaliation implemented in 2025 after the Supreme Court decision, indicating quantifiable impacts on trade flows and costs.

Beyond goods, regulatory exposure could extend to services, tech, and procurement. As reported by Business Standard, France’s finance minister Eric Lombard pointed to the possibility of tightening data-usage rules for large U.S. tech firms while cautioning that blanket tariffs could harm both economies.

Supreme Court ruling on IEEPA and Trump’s tariffs, implications

The International Emergency Economic Powers Act (IEEPA) underpinned the prior emergency-tariff strategy; a new legal landscape now constrains that approach after the Supreme Court invalidated most broad tariffs, as reported by Finance Magnates. Practically, this narrows the scope for sweeping, across-the-board tariff actions under IEEPA and shifts attention to measures that fit within the Court’s limits.

EU officials are watching how Washington recalibrates its trade tools within those constraints. As reported by The Guardian, European capitals sought clarity on the administration’s next steps following the ruling, which will influence the pace and shape of any EU response under the ACI and related instruments.