The European Union is intensifying discussions on retaliatory measures as hopes for a transatlantic trade agreement with the United States continue to unravel.

In view of threats from U.S. President Donald Trump to impose 30% tariffs on EU exports by August 1, Brussels is preparing a comprehensive response that could target as much as €100 billion worth of U.S. goods.

According to reports in Reuters and Bloomberg, the EU is weighing new tariffs on €72 billion of American exports, in addition to an already prepared €21 billion package currently suspended until August 1.

A central part of the EU’s contingency is the possible activation of its Anti-Coercion Instrument (ACI)—a last resort trade defense tool designed to counter economic pressure from third countries. Initially aimed at addressing Chinese coercion, ACI could now be turned on Washington. Measures could restrict U.S. access to EU public procurement markets (worth approximately €2 trillion annually), limit U.S. service providers, and impose constraints on investment, intellectual property protections, and sensitive sectors like food and chemicals.

While France strongly supports using the ACI, Germany and other states have historically hesitated, calling it a “nuclear option”. According to media reports, however, momentum appears to be shifting.

To activate the ACI, the European Commission would need backing from 15 EU countries representing 65% of the bloc’s population. European Commission President Ursula von der Leyen acknowledged growing support, stating: “We are not there yet,” and adding that extraordinary measures may become necessary.

EU Trade Commissioner Maros Sefcovic, who recently returned from inconclusive talks in Washington, described the U.S. positions as inconsistent.

The EU’s preferred route remains a negotiated settlement.