Bloomberg: France proposes to use EU's 'nuclear' trade tool against US tariffs.

France calls on the EU to take action against US restrictions

France has joined a group of countries calling on the European Union to consider the possibility of using the 'coercive countermeasure' tool - the strictest mechanism for trade protection - in response to US tariff restrictions.

This tool was created to deter and respond to intentional economic actions by third countries. It was established after the US imposed tariffs on European exports during Trump's first presidency and China's pressure on Lithuania over Taiwan's trade representation in 2021.

Currently, the European Commission is not considering the use of this mechanism. Discussions about its use are still in the early stages, as it is necessary to evaluate which specific US tariffs will be introduced on April 2.

Last week, US President Donald Trump imposed 25 percent tariffs on steel and aluminum imported into the US. In response, the European Commission announced tariffs on American goods. However, when Trump threatened to impose 200 percent tariffs on 'wines, champagne, and alcoholic products' from France and other EU countries, the European Commission postponed its countermeasures until mid-April.