Investing.com -- France is urging the European Union (EU) to contemplate using its most potent countermeasure against the United States, if President Donald Trump employs tariffs to unduly pressure the bloc into policy alterations, according to a report from Bloomberg, citing sources.

This proposition makes France part of a minority group within the EU that believes the anti-coercion instrument, a mechanism designed to retaliate against nations that coercively use trade and economic measures, should be an option.

The US is set to impose comprehensive tariffs on global partners, including the EU, as early as April 2. President Trump has stated these duties will address non-tariff obstacles that he considers unfair, such as domestic regulations and the EU’s value-added tax (VAT). However, the EU maintains that its VAT is a fair, non-discriminatory tax that applies equally to domestic and imported goods.

The anti-coercion instrument, subject to various conditions and steps, could eventually enable the EU to deploy a wide array of retaliatory responses. These could include restrictions on trade and services, as well as certain intellectual property rights, foreign direct investment, and access to public procurement.

Earlier this month, Trump intensified a global trade war by imposing a 25% tariff on steel and aluminum imports. This led the EU to declare its own retaliatory duties on up to €26 billion ($28.1 billion) of politically sensitive American goods. The forthcoming reciprocal tariffs, tailored for each trading partner to balance any perceived disadvantage for American companies, could surpass the metals duties.

The European Commission, the executive arm of the EU responsible for trade matters, is not currently considering the anti-coercion instrument, according to an anonymous source. Another person stated that any discussions on using the tool were remote, as the EU first needed to see what tariffs the US announces on April 2 and whether the anti-coercion instrument was applicable.

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