ACI: EU's 'Weapon' in Trade War with the US

The European Union views the 'Anti Coercion Instrument' (ACI) as the last resort in the trade war with the US. The ACI aims to deter third countries targeting the EU or its member states through trade pressure.

The ACI empowers the EU to propose countermeasures, such as special taxes on American tech giants, investment restrictions, or exclusion from parts of the European market and public procurement.

The decision to activate the ACI rests with the member states and requires a qualified majority (at least 15 of the 27 states) to adopt measures. Before implementation, the Commission will hold talks with the alleged offender.

The EU and US continue talks for a trade agreement, with the EU aiming for a basic tariff agreement of 10% and protection of key industries. The US side states that from August 1st, tariffs of 30% will be applied to most EU exports to the US.

The American president has already imposed charges of 25% on cars and their parts, and has doubled tariffs on steel and aluminum. The Commission estimates that existing US tariffs cover approximately €380 billion, or almost 70% of European exports to the US.

Source: cnn.gr