Competitiveness Check—September 16 Special Edition

Antonia Wunnerlich,
Penny Naas

Competitiveness Check—September 16 Special Edition 

Our special “back-to-school” edition highlights 10 key transatlantic trade-related developments.  

The Quick Take  

European Commission President Ursula von der Leyen’s annual State of the Union speech stressed EU security and competitiveness at a delicate time for both. The European Parliament remains critical of the US-EU trade deal, and the bloc’s decision to fine Google €2.95 billion ($3.5 billion) for ad-tech abuses has ruffled feathers in the United States.  

At the same time, the EU is under pressure from US President Donald Trump to take a tougher line on China and India, just as it works to conclude a free trade agreement with the latter by year-end. Adding to the heady mix, the US Supreme Court is preparing to rule on the legality of Trump’s tariff regime. 

Curious about the US-EU trade deal? Check out our recent analysis on how it compares with the US-UK and US-Japan agreements here.  

Top 10 Transatlantic Trade-Related Developments  

  • August 21: The US Department of the Treasury and the US Internal Revenue Service issued FAQs to address the accelerated termination of several energy provisions under the One Big Beautiful Bill Act. The legislation significantly reshapes US energy policy by reversing key green energy provisions of the Inflation Reduction Act.
  • August 22: The US Department of the Interior, citing national security concerns, ordered Danish renewable-energy company Ørsted to halt construction of its offshore wind project, Revolution Wind, near Rhode Island. That same day, Denmark and California signed a memorandum of understanding on cooperation on green-economy resilience, technology, and innovation. 
  • August 27: As part of a Digital Markets Act (DMA) review, the European Commission invited interested parties to participate in a call for evidence and to share their views by replying to a questionnaire on artificial intelligence (AI) by September 24. The review assesses the DMA’s effectiveness and impact on businesses and consumers.
  • August 28: The European Commission launched a call for evidence to gather stakeholder input on Carbon Border Adjustment Mechanism rules, including how to calculate embedded emissions, adjust certificates for the EU Emissions Trading System free allocation, and deduct carbon prices paid in a third country.
  • August 29: The US Court of Appeals for the Federal Circuit ruled that Trump’s tariff regime, insofar as it relates to his declarations of a national economic emergency, exceeded presidential authority accorded by the International Emergency Economic Powers Act. Enforcement of relevant tariffs is stayed until October 14, pending review by the Supreme Court, which will hear the case on an expedited basis in early November. 
  • September 4: In an immigration raid, US federal agents arrested over 300 South Korean workers at a Hyundai battery plant in Georgia. The operation triggered diplomatic tension with Seoul, which had pledged to invest $350 billion in the United States as part of a bilateral trade deal. 
  • September 5: The European Commission fined Google €2.95 billion ($3.5 billion) for violating antitrust rules. Google vowed to appeal. In response, Trump threatened retaliatory tariffs against the EU, signaling a possible Section 301 probe. 
  • September 9: EU trade negotiators arrived in New Delhi to advance trade talks and resolve differences over agriculture, dairy, and non-tariff barriers. The negotiators aim to meet an ambitious end-of-year deadline for a free trade agreement. 
    • Separately, September 9 marked one year since the release of Mario Draghi’s competitiveness report, which urged sweeping reforms to boost EU growth. A conference to review the Commission's progress opened on September 16. Progress remains uneven. 
  • September 10: In her State of the Union speech, von der Leyen emphasized “ambition, unity and urgency” in advancing the bloc’s security and competitiveness. Meanwhile, Trump urged the EU to impose 100% tariffs on China and India over Russian oil purchases.
  • September 16: Trump arrived in the United Kingdom for an unprecedented second state visit during which British Prime Minister Keir Starmer is keen to secure deeper ties with the United States on trade, energy, and security. 
    • That same day, the EU and Indonesia reportedly concluded talks on a trade deal. Both parties intend to sign the agreement next week.
    • Separately, the European Commission approved Germany’s plan to expand its budget, even though it will initially exceed EU spending limits. The decision allows Berlin to increase defense and infrastructure spending. 
    • Meanwhile, the US International Development Finance Corporation is in discussions to establish a $5 billion critical minerals fund in partnership with Orion Resource Partners.  

Figure of the Fortnight  

12 gigawatts (GW): The amount of new utility-scale solar electric generating capacity in the United States during the first half of 2025, according to the US Energy Information Administration. Developers plan to add another 21 GW in the second half of the year. If those plans are realized, solar would account for more than half of the 64 GW that developers plan to bring online in 2025.  

The EU is on track to install 64.2 GW of solar energy capacity in 2025, a 1.4% drop from the 65.1GW installed in 2024.  

Meanwhile, China added 212 GW of new solar capacity (including utility-scale projects and distributed systems) in the first half of this year, reports PV Magazine.  

Quote Unquote 

“Europe today ‘hit’ another great American company, Google, with a $3.5 Billion Dollar fine, effectively taking money that would otherwise go to American Investments and Jobs. … We cannot let this happen to brilliant and unprecedented American Ingenuity and, if it does, I will be forced to start a Section 301 proceeding to nullify the unfair penalties being charged to these Taxpaying American Companies.” 

US President Donald Trump in a September 5 Truth Social post.  

“This must be Europe's Independence Moment. I believe this is our Union's mission. To be able to take care of our own defense and security. To take control over the technologies and energies that will fuel our economies. To decide what kind of society and democracy we want to live in. To be open to the world and choose partnerships with allies - old and new. Ultimately, it is about having the freedom and the power to determine our own destiny.” 

European Commission President Ursula von der Leyen during her September 10 State of the Union speech.