Facing a potential 30% US tariff on imports, the EU considers activating its Anti-Coercion Instrument (ACI), a powerful trade defense mechanism. This "nuclear option" could restrict US access to the EU market, impacting public tenders, goods, services, and investments. The ACI, designed to deter economic coercion, allows for retaliatory measures proportionate to the harm inflicted. While last-minute trade talks are underway, the EU might deploy the ACI if a satisfactory deal isn't reached before the August 1st tariff deadline. The ACI's activation would require investigation, member state approval, and attempts at dialogue before implementation.

Prepared by Christopher Adams and reviewed by editorial team.