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Home Posts Between Beijing and Washington: The European Union Struggles to Build a Strategy in the Global Trade War

Between Beijing and Washington: The European Union Struggles to Build a Strategy in the Global Trade War
Rémi Daniel, Guy Lerman 3 August, 2025

Within just a few days, Ursula von der Leyen, president of the European Commission, held two critical meetings that illustrate the challenges Europe faces in the international arena.

On July 24, 2025, a senior European delegation led by von der Leyen met with the Chinese leadership in Beijing. Despite declarations of commitment to cooperate and deepen ties by both sides, the meeting, which was accompanied by low expectations, did not yield any tangible results.
Von der Leyen stressed that EU–China trade relations had reached a turning point, stating that a rebalancing of the partnership was necessary to ensure it remained sustainable and mutually beneficial. She called on both parties to acknowledge their mutual concerns and propose real solutions.

The European Union called on China to act in accordance with the principles of international law and to refrain from providing military support to Russia. At the same time, economic tensions continued between the sides on issues such as market access barriers and Chinese trade practices perceived in Europe as unfair. Disagreements remained over tariffs on electric vehicles and mutual retaliatory measures. The European Union reaffirmed its commitment to the “One China” policy, condemned the escalation of tensions in the Taiwan Strait and surrounding maritime regions, and called for conflict resolution through peaceful means and in accordance with international law.

However, despite these concerns, the two sides failed to agree on solutions, and tensions remained high.

On July 27, von der Leyen met with US President Donald Trump. At the conclusion of the meeting, both parties announced an agreement to end the tariff war Trump had launched against the European Union as part of his broader campaign on trade.
The president of the European Commission agreed to impose a 15% tariff on European exports to the United States (with no reciprocal tariff on American exports to the European Union), expressed willingness to invest approximately $600 billion in the US economy, and committed to purchasing American energy products worth about $750 billion.

Since the meeting, contradictory reports have emerged about the nature of the agreements: While the White House highlighted an American victory, the European Commission presented the understandings with Washington as the most efficient way to prevent uncertainty or higher tariffs. Although most European governments welcomed the results, many in Europe voiced strong criticism, calling the agreement a “capitulation deal.”

The two meetings and their outcomes underscored the relative weakness of the European Union in international competition, especially against players determined to advance their interests by leveraging power rather than dialogue. What many view as a failure by the European Commission—particularly in the field of trade, where it holds full authority—could further complicate efforts to shape a unified and effective European policy at a time when new strategies are urgently needed.

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      • Iran
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      • Yemen and the Houthi Movement
      • Iraq and the Iraqi Shiite Militias
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      • Saudi Arabia and the Gulf States
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