EU-US Trade Hits Record as Tariff Tensions Conceal Sector Losses
Overview of Record EU-US Trade Figures
By Maria Martinez
BERLIN, July 3 (Reuters) - The trade of goods between the EU and the U.S. reached a record €875 billion ($1.00 trillion) last year despite mounting tariff pressures, but the headline figures mask serious damage in key sectors, a study by the German Economic Institute (IW) showed on Friday.
Growth in Exports and Imports
European Union exports to the United States rose 7.7% to €580 billion, while U.S. imports into the EU climbed 2.2% to €295 billion, pushing the EU's trade surplus to nearly €285 billion.
Initial Impressions of Tariff Impact
At first glance, these record figures might suggest that the tariffs introduced under President Donald Trump and political tensions have left the underlying economic relations largely unaffected or have even unintentionally intensified them.
Expert Analysis and Sector-Specific Losses
However, this first impression is misleading, said IW economist Samina Sultan.
Certain sectors are already suffering significantly, particularly the automotive sector.
Automotive Sector Performance
EU car and parts exports to the U.S. fell 20.4% in 2025, with Germany - which accounts for nearly two-thirds of EU auto exports to the United States - posting an 18.9% drop.
Exceptions in Export Trends
Ireland bucked the trend with a 52.7% surge in exports, driven by tariff-exempt pharmaceutical and chemical products.
Transatlantic Services Trade
Transatlantic services trade also hit a record €865 billion, though the EU ran a €178 billion deficit in that category.
Intellectual Property and Service Imports
Intellectual property fees - covering software licenses, patents and trademarks - accounted for more than 40% of EU service imports from the U.S., rising 13.7%.
($1 = 0.8730 euros)
(Reporting by Maria Martinez, Editing by Miranda Murray)
