EU Trade Surplus Shrinks 60% Amid Sharp Drop in Exports to US

The European Union’s trade surplus with the rest of the world shrank by 60% in February, driven by a steep decline in exports to the United States, according to newly released data from Eurostat.

The figures highlight mounting pressure on European trade flows as transatlantic tensions continue to weigh on exports. Shipments from the EU to the U.S. fell by 26.4% to €38.3 billion ($45.17 billion), reflecting the ongoing impact of Washington’s 15% tariffs on European goods.

The sharp contraction in exports significantly eroded the bloc’s external surplus, underscoring the vulnerability of Europe’s trade-dependent economy to shifting global trade dynamics and protectionist measures.

Analysts say the continuity of imposing U.S. tariffs has disrupted key European industries, particularly manufacturing and automotive sectors, which rely heavily on access to the U.S. market.

The latest data comes amid broader concerns over slowing global trade and rising economic fragmentation, with policymakers in Brussels facing increasing pressure to diversify export markets and reduce dependence on any single trading partner.

While EU officials have sought to engage in negotiations with Washington to ease trade restrictions, progress has remained limited, leaving businesses exposed to prolonged uncertainty.

Looking ahead, economists warn that unless trade tensions ease, the bloc’s external position could remain under strain in the coming months, particularly if demand from major partners continues to soften.