As the world grapples with intensifying geopolitical rivalries, the European Union has found itself at the epicenter of a shifting global order. On September 15, 2025, European Commission President Ursula von der Leyen delivered her annual state of the European Union address, painting a stark portrait of the challenges facing the bloc. Her speech, delivered amid heckles and jeers from lawmakers in Brussels, underscored the mounting pressure on Europe to assert itself in a landscape dominated by what she called "imperial ambitions and imperial wars."
According to South China Morning Post, von der Leyen called for "more pressure on Russia to come to the negotiating table," asserting that "we need more sanctions" in response to Moscow's ongoing war in Ukraine. She emphasized the urgency of phasing out Russian fossil fuels, targeting the so-called shadow fleet and third countries that help Russia circumvent sanctions. Early discussions, diplomatic sources say, have even touched on the use of secondary sanctions against companies from outside the EU that flout these measures. However, the feasibility of such moves remains uncertain, given the potential to upend relations with Beijing and disrupt global trading rules.
Von der Leyen's address came on the heels of reports, first published by the Financial Times, that U.S. President Donald Trump had told European officials the United States would impose 100 percent tariffs on China and India for buying Russian energy—but only if Europe followed suit. This threat added another layer of complexity to an already fraught transatlantic relationship. Von der Leyen urged lawmakers to consider the "repercussions of a full-fledged trade war with the US," warning of "chaos" and contrasting it with recent images of China flanked by Russian and North Korean leaders at a military parade in Beijing. "Putin gloating about how Russia-China relations are at an unprecedented high. None of this is a great surprise. But it reflects the changing landscape," she said, calling on Europe to rise to the challenge.
"Europe must fight. For its place in a world in which many major powers are either ambivalent or openly hostile to Europe. A world of imperial ambitions, imperial wars. A world in which dependencies are ruthlessly weaponised," von der Leyen declared, according to The Guardian. The speech highlighted the growing consensus within the EU that it must become more robust in defending its own interests, especially as the United States grows increasingly unpredictable as an ally.
Yet the address also laid bare the deep divisions within European politics. Lawmakers heckled von der Leyen as she proposed suspending the EU's trade deal with Israel over its bombardment of Gaza—a move that was welcomed by some but criticized as "too little too late" by others. The requirement for unanimity among member states has often hobbled the EU's ability to act decisively, a fact not lost on von der Leyen's critics.
Amid these headwinds, von der Leyen defended the EU-US trade deal signed in July 2025. The agreement, which saw the EU reduce tariffs and open its market to American goods in exchange for a 15 percent US tariff on most EU-made goods, has been criticized as one-sided. "We ensured that Europe got the best possible deal out there. We have put our companies at a relative advantage because some of our direct competitors face much higher US tariffs," von der Leyen told the European Parliament, as reported by South China Morning Post. However, critics argue that the deal largely benefits the US while exposing European exporters to new risks.
On the economic front, von der Leyen announced a suite of initiatives aimed at boosting Europe's competitiveness in strategic sectors dominated by China. She unveiled a €1.8 billion (US$2.1 billion) equity package to bolster local battery production and introduced "made-in-Europe" criteria for public procurement in cleantech projects. Programs targeting the battery and steel sectors—where China enjoys near-total dominance—were also rolled out, including a "new, long-term trade instrument" to replace expiring safeguard measures on steel imports. "Global overcapacity is squeezing margins and leaving little incentive to pay a clean premium," she acknowledged.
Von der Leyen also sought to reassure lawmakers that Europe would not water down its digital or environmental regulations in response to US pressure. "I want to be crystal clear on one point: whether on environmental or digital regulation, we set our own standards. We set our own regulations. Europe will always decide for itself," she said.
Meanwhile, the international dimension of the Ukraine war loomed large over the proceedings. On September 13, 2025, Keith Kellogg, the US special envoy to Ukraine, told a security conference in Kyiv that "Russia is in fact losing this war," describing Moscow as a "junior partner" to China. Kellogg argued that if China were to cut off support for Russia, "the war would be over tomorrow." He pointed to Russia's need to bring in 10,000 North Korean troops as evidence of its military challenges.
China, for its part, pushed back forcefully against these assertions. Lin Jian, spokesman for the Chinese Foreign Ministry, insisted that trade relations with Russia are "normal" and comply with WTO rules. "The normal exchanges and cooperation between Chinese and Russian enterprises comply with WTO rules and market principles, are not targeted at any third party, and should not be subject to interference or influence from any third party," Lin said at a press briefing on September 15, as reported by Global Times. China accused the US of "bullying" and "economic coercion" over calls for new tariffs and sanctions, warning that Beijing would take "firm countermeasures" if its interests were harmed.
Von der Leyen's speech also referenced ongoing bilateral trade negotiations with Mexico, Mercosur, and India—with a "historic deal" with India expected by the end of 2025. She called for building a coalition of like-minded countries to reform the global trading system, invoking the Pacific Rim trade bloc CPTPP as a model.
Despite these ambitious plans, critics argue that the EU's response to global crises has been hampered by internal divisions and a lack of decisive leadership. Former European Central Bank president Mario Draghi's landmark report last year called for vastly greater investment in Europe's security, infrastructure, and technology, enabled by common debt and more integrated markets. Yet, as The Guardian notes, only a fraction of these recommendations have been implemented.
As von der Leyen concluded her address, the message was clear: Europe stands at a crossroads. The global trading system is "crumbling," alliances are shifting, and the continent faces a rising tide of external threats and internal skepticism. Whether the EU can rise to meet these challenges—and forge a "new Europe" capable of defending its interests—remains to be seen. But time, as many in Brussels now acknowledge, may be running out.
