‘Europe prefers dialogue and solutions, but fully prepared to act if necessary,’ says Von der Leyen at Davos 2026

President of the European Commission Ursula von der Leyen said on Wednesday that Europe prefers dialogue and solutions, but is fully prepared to act if necessary with unity, urgency and determination if such a need arises.

Referring to the escalation in tensions over Trump’s quest to acquire Greenland, she said “the threat of additional tariffs for security reasons is simply wrong” and added that Europe’s leaders are meeting on Thursday to discuss response to the US president’s threatened tariffs.

“Europe prefers dialogue and solutions, but we are fully prepared to act if necessary with unity, urgency and determination,” she said.

She acknowledged that there has been a shift in the international order that “is not only seismic but it is permanent.”

“We now live in a world defined by raw power,” Von der Leyen said, adding that it is now “imperative” for Europe to “speed up our push for independence”, and get “new levers of power”.

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Macron urges EU to consider retaliation against US tariffs

European countries are strongly opposing Donald Trump’s efforts to acquire Greenland and threatening tariffs on nations opposing his plan.

French President Emmanuel Macron said at the World Economic Forum on Tuesday that he preferred “respect to bullies” and the “rule of law to brutality”.

The US president had threatened to levy a 200% tariff on French wine and champagne, after the French premier declined an invitation to join Trump’s international ‘Board of Peace’.

Macron is among the leaders who have been urging the EU to consider retaliatory options against US tariffs, including an anti-coercion tool nicknamed “trade bazooka”.

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What is Anti-Coercion Instrument (ACI) or ‘trade bazooka’?

The ‘Anti-Coercion Instrument’ (ACI) was approved by Brussels in 2023 in order to deter attempts by outside powers to force policy changes on the EU or member states. It was given a nod at a time when a threat was seen as coming from China, which had “punished” Lithuania for its links with Taiwan by putting restrictions on bilateral trade.

If there is agreement that coercion has been attempted by an outside power, and if negotiations to resolve the conflict fail, then the EU has enhanced powers to retaliate “within international law”.

The ACI permits import and export restrictions to be placed on goods and services, but also on intellectual property rights and foreign direct investment.

It also enables the imposition of various restrictions on access to the EU market. However, the ACI has never been used till now.