European Commission president von der Leyen: agreed 15% tariff limit with US keeps our companies in competitive position

European Commission president von der Leyen: agreed 15% tariff limit with US keeps our companies in competitive position

European Commission President Ursula von der Leyen has been navigating a complex geopolitical landscape, balancing the need for economic competitiveness with the demands of European unity. A recent development, the agreement on a 15% tariff limit with the United States, has sparked both praise and criticism. The deal, brokered at the Turnberry Scottish golf resort in July, has been a point of contention for many European politicians and commentators who argue it is unbalanced in favor of the US .

Von der Leyen, in her State of the Union speech scheduled for September 12, 2025, will outline the EU's priorities for the coming year. The agreement with the US has been a focal point of her tenure, reflecting the bloc's efforts to maintain a balance between economic interests and political stability . The deal includes the removal of tariffs on US industrial goods and easing access for US farm products, while accepting a 15% US tariff on most of its exports .

Despite the criticism, EU officials maintain that the deal was the best they could secure to avoid a trade war and provide vital certainty for European businesses. The agreement also reflects an unwillingness among EU leaders to escalate tensions with the US, particularly given Washington's key role in Europe's security . Alberto Alemanno, a professor of EU law at the HEC Paris business school, noted that while von der Leyen embodies EU weaknesses, these are not of her making .

The 15% tariff limit is part of a broader strategy aimed at boosting Europe's economic competitiveness. The EU Commission has proposed policies to cut bureaucracy for struggling industries and help European firms compete with rivals in China and the US. However, some industries have criticized the Commission for not doing enough to implement a competitiveness blueprint drawn up by former European Central Bank President Mario Draghi .

Von der Leyen's Commission has also proposed speeding up the phase-out of Russian fossil imports and accelerating proposals to clamp down on Russian market access in retaliation for the failure to reach a peace agreement with Ukraine. This move is part of a broader effort to increase economic pressure on Russia through additional measures .

The agreement with the US and the proposed measures against Russia highlight von der Leyen's approach to balancing economic interests with geopolitical realities. As she prepares to address the European Parliament, she will need to navigate the delicate balance between maintaining economic competitiveness and addressing the concerns of European citizens and businesses .