EU-U.S. trade hits record, but Europe’s auto sector takes a hit

EU-U.S. goods trade reached a record €875 billion in 2025. EU exports to the United States rose 7.7% to €580 billion, while imports from the U.S. increased 2.2% to €295 billion, leaving the EU with a goods surplus of nearly €285 billion. Some of that surge was front-loaded ahead of tariffs that took effect in April.

EU car and parts exports to the U.S. fell 20.4% last year, and Germany, which accounts for nearly two-thirds of those exports, saw an 18.9% drop. Ireland posted a 52.7% jump, helped by tariff-exempt pharmaceuticals and chemicals.

A December 2025 study by the German Economic Institute put German exports to the U.S. down 7.8% in the first three quarters of 2025, compared with average growth of nearly 5% in comparable periods from 2016 through 2024. Motor vehicles and parts, machinery and chemical products were among the hardest hit, and together accounted for more than two-fifths of German exports to the U.S. The institute estimated Germany could face average costs of about €16 billion over 2025-2028 if the 15% baseline tariff remains in place, with much larger losses if duties rise again.

Transatlantic services trade also set a record at €865.2 billion in 2024, but the EU ran a €178.4 billion deficit in that category. Intellectual-property fees made up more than 40% of EU service imports from the U.S., while travel-services imports from the U.S. fell about 8%.

The deal was reached in July 2025 by European Commission President Ursula von der Leyen and U.S. President Donald Trump. The agreement was meant to bring stability and predictability, and the EU side took effect on July 1, 2026. The agreement includes safeguard mechanisms that can be triggered if three or more EU member states, EU industry or trade unions say U.S. imports are causing serious injury.