That's not really "trying to out bully".
That's contingency planning around an unstable government.
Trump has fucked around with Canadian trade negotiations. Why should the EU hang their hopes on what would likely be a similar treatment.
Just smile and nod at the US, and do your own thing

An embargo on USA would be so... What's the word? 🤔

Just do it. Doing anything with the US these days comes with so much bullshit attached it's barely even worth it. It's like staying married to your abusive spouse for no other reason than convenience.

We'll build our own World Trade Centre, with blackjack and hookers! Also we won't cause any Middle-Easterners to become terrorists and come and fly planes into it

I understand the sentiment, but remember what happened to Germany post WWI. Austerity-like treatment (as if Trump isn't doing that himself with tariffs, the dumbass...) is most likely to only foster resentment of "others" and ossify MAGAt-like mindsets.