The Transfer Pricing Show

B.O.G. (Bazookas Over Greenland): The EU's Nuclear Option

16 min · 20. Jan. 2026
Episode B.O.G. (Bazookas Over Greenland): The EU's Nuclear Option Cover

Beschreibung

The EU's Anti-Coercion Instrument—nicknamed the "trade bazooka"—lets Brussels retaliate against economic bullying without unanimous member state approval. Adopted in 2023, it authorizes tariffs, procurement bans, IP restrictions, and financial market exclusions against countries weaponizing trade to influence EU policy. Built after Trump's 2018 tariffs and China's pressure on Lithuania, it's now facing its first real test: US threats over Greenland. The legal case looks clear—using tariffs to obtain territory is textbook coercion. But with $1.3 trillion in annual trade at stake, the political will to pull the trigger remains uncertain. Deterrence only works if your adversary believes you'll act.

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