Continued Impact of U.S. Tariffs Drives EU Exports to U.S. to Two-Year Low

The drag from U.S. trade tariffs on Europe has intensified, as recent data reveal a sharp drop in European Union shipments to the United States, marking their lowest level since late 2023. This decline has caused the EU’s overall trade surplus to contract dramatically, clouding the region’s economic growth outlook.

Figures published by Eurostat on Monday show that in June, exports from the 27 EU member states to the U.S. fell 10 percent year-on-year to just over €40 billion (approximately USD 46.8 billion), the weakest performance in two years. The downturn highlights the direct impact of the Trump administration’s tariff measures on transatlantic commerce.

As exports waned, the EU’s trade surplus plunged from €12.7 billion in May to a mere €1.8 billion in June. Earlier in March, shipments to the U.S. had surged to nearly €72 billion, driven by American buyers rushing to stockpile goods ahead of anticipated tariff announcements.

Despite the steep decline, the EU appears reluctant to retaliate immediately. Spokesperson Olof Gill stated last week that a joint declaration outlining agreement terms should be concluded “shortly.” According to China Central Television, under the accord with the U.S., the EU will suspend two planned retaliatory tariffs on American imports for six months.

Tariffs are placing pressure on Europe’s key industries, with June’s trade surplus contraction worsened by a downturn in chemical exports—a crucial sector for many EU economies. Germany, a leading industrial exporter, has experienced a sustained slide in U.S. sales in recent months, straining factory output and curbing overall growth. The euro’s recent strength has further weakened demand for European goods, compounding exporters’ challenges.