Transatlantic Trade Triumph: Unseen Strains Under Record Figures

The trade between the EU and the U.S. hit a record €875 billion last year despite tariff pressures. While exports increased, key sectors like automotive suffered. EU's trade surplus stood at €285 billion. Services trade reached €865 billion, with intellectual property fees comprising a significant portion.

The trade of goods between the European Union and the United States soared to a record €875 billion last year, despite increasing tariff tensions, as revealed by the German Economic Institute (IW) on Friday.

While European Union exports to the U.S. grew by 7.7% to €580 billion, American imports into the EU rose by 2.2% to €295 billion, boosting the EU's trade surplus to nearly €285 billion. These headlines, however, are deceptive, indicating underlying damages in critical sectors amidst political turbulence.

Particularly affected is the automotive sector, where EU car and parts exports to the U.S. plunged by 20.4% in 2025, with Germany, holding a significant share of these exports, marking an 18.9% decline. Meanwhile, Ireland reported a sharp 52.7% increase due to tariff-free pharmaceutical products. Simultaneously, transatlantic services trade hit a record €865 billion, with intellectual property services dominating EU imports from the U.S., rising by 13.7%.