Because the "Trade Bazooka" (Anti-Coercion Instrument) allows for retaliation beyond just physical goods, the proposed measures are designed to hit the U.S. where it earns its largest profits:
Technology and Services.
1. Stripping Public Contracts (The "Cloud" Ban)
One of the most discussed measures is barring U.S. companies from public procurement tenders.
The Impact: Major U.S. cloud and software providers (like Microsoft, Google, and Amazon) could be legally blocked from bidding on multi-billion euro government contracts for hospitals, schools, military infrastructure, and administrative systems.
2. Digital Service Restrictions
The EU is considering "fragmenting" the market for U.S. tech giants by restricting service licenses.
The Strategy: If the EU restricts the validity of U.S. service licenses, a subsidiary based in Dublin (like Meta or Google) might find itself legally unable to sell its parent company's software or digital ads to clients in Paris or Berlin.
3. Suspension of Intellectual Property (IP) Rights
This is often called the "nuclear option" within the bazooka.
The Action: The EU could theoretically "freeze" or stop enforcing certain U.S. patents or copyrights within Europe. This would allow European companies to use U.S. technologies or software without paying royalties, directly targeting the revenue of the U.S. tech and pharmaceutical sectors.
4. Financial Market & Investment Blocks
Access to Banking: The EU could limit the ability of U.S. financial institutions to provide certain banking or insurance services within the Single Market.
Investment Screening: The "bazooka" allows for a total block on new American foreign direct investment (FDI) into key European industries.
No Unanimous Vote Required: Usually, the EU needs all 27 countries to agree on big trade moves. The "bazooka" can be triggered by a "qualified majority" (15 countries representing 65% of the population), meaning one or two hesitant countries cannot block it
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