“This reaction is destabilizing precisely the level of cautious security that had been achieved through intensive negotiations,” Lange said. “Moreover, this is of a different quality — it is an attempt to exert political influence through tariff and trade policy. This brings it into the realm of the Anti-Coercion Instrument,” also known as the EU’s “trade bazooka.” That would allow the 27-nation bloc to retaliate with its own tariffs or other trade measures.
“In the past, we have already seen several posts on Truth Social that did not lead to concrete actions,” Lange continued. “I hope that will also be the case this time, because otherwise not only will the Scotland deal collapse, but there will also be a significant escalation.”
The Office of the U.S. Trade Representative is the agency responsible for launching the Section 301 trade investigation, which the president promised in his post to “immediately initiate.” A spokesperson for USTR did not immediately respond to questions about such an investigation and if or when they plan to announce it.
Trump’s trade chief is already conducting several other trade investigations, including a sweeping probe on 16 trading partners’ manufacturing overcapacity that could result in higher duties on China, the EU, Indonesia, South Korea, Vietnam, Mexico, Japan and India, among others. Another 301 investigation is looking into Germany’s pharmaceutical pricing practices.
Stefanie Bolzen, Camille Gjis and Emily Cadei contributed to this report.
