Portrait of Ursula von der Leyen
Politician · policy
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Ursula von der Leyen on Tariffs

Negotiated Tariff Deal (strong)

TL;DR

Ursula von der Leyen secured a deal stabilizing US tariffs at a 15% baseline, favoring predictability over confrontation.

Key Points

  • The President stabilized a baseline tariff rate of 15% for the majority of EU exports to the US as part of a July 2025 agreement.

  • The deal included zero-for-zero tariffs on specific strategic products, such as all aircraft and component parts, chemicals, and semiconductor equipment.

  • She stated that countermeasures were being prepared in response to earlier steel tariffs, while also establishing a quota system for steel and aluminium.

Summary

Ursula von der Leyen's core position on tariffs, particularly with the United States, has centered on securing stability and predictability for European businesses and citizens amid escalating trade tensions. Following difficult negotiations, she announced a deal that stabilized a single 15% tariff rate for the vast majority of European Union exports to the US, which she characterized as a crucial ceiling providing much-needed clarity. This agreement included zero-for-zero tariffs on a number of strategic products, such as aircraft parts and certain raw materials, and established a quota system for steel and aluminium, while cutting existing tariffs in those areas.

Her approach has been to move away from confrontation toward negotiation, stating that tariffs as a primary tool will not fix global trading system deficiencies. She acknowledged the past benefits of Transatlantic trade, which created millions of jobs, while agreeing that the global system needed updates. The deal also involved the EU agreeing to increase purchases of US energy products and invest in the US, in exchange for tariff relief and securing access to the US market. The President concluded that unity was Europe's strength in achieving this breakthrough, though the new 15% baseline tariff rate was higher than pre-escalation levels.

Frequently Asked Questions

Ursula von der Leyen prioritizes negotiating with trade partners to reduce or stabilize existing tariffs, viewing them as necessary to secure certainty. She seeks to avoid confrontation, as seen in the deal reached in July 2025 to cap most US tariffs on EU goods at 15%. Her overall aim is to promote fair and rules-based trade while defending European interests.

No, the President deeply regretted the announcement of universal tariffs by the US, viewing them as a major blow to the world economy that would cause immense suffering and spiraling uncertainty. However, rather than rejecting engagement, she moved to negotiate, securing a deal that set a 15% ceiling instead of allowing for potentially higher, unmanaged rates.

The negotiation resulted in a deal that established a clear 15% ceiling on most EU exports to the United States, providing predictability for businesses. This trade-off also involved the EU committing to increased purchases of US energy products and investments. The President framed this as reaffirming the transatlantic partnership and securing immediate tariff relief.