Trade between the European Union and the United States soared to a new high of €875 billion ($1.00 trillion) last year despite tariffs, according to a study released on Friday. The German Economic Institute (IW) reported a 7.7 percent increase in EU exports to the US, totaling €580 billion, while US imports into the EU rose by 2.2 percent to €295 billion, resulting in the EU’s trade surplus reaching nearly €285 billion.
The study highlighted that the surge in trade was partly due to pre-tariff export activities before tariffs went into effect in April, leading to significant economic impacts, particularly in Germany’s auto industry. The report revealed a 20.4 percent decline in EU car and parts exports to the US in 2025, with Germany, responsible for a large portion of EU auto exports to the US, experiencing an 18.9 percent decrease.
Although most EU countries saw a drop in their goods exports to the US, Ireland bucked the trend with a notable 52.7 percent increase in exports, driven by tariff-exempt pharmaceutical and chemical products. Only a few EU member states, including the Czech Republic, Italy, Denmark, and Finland, reported growth in their goods exports.
In addition to goods trade, transatlantic services trade also reached a high of €865 billion, with the EU facing a deficit of €178 billion in that sector. The study emphasized that the transatlantic trade relationship is more balanced when considering both goods and services trade, highlighting the EU’s deficit in services and surplus in goods.
Intellectual property fees, comprising software licenses, patents, and trademarks, were a significant component of EU service imports from the US, increasing by 13.7 percent. The study noted that the services sector, although not directly impacted by US tariffs, still felt the negative effects of the trade conflict, as seen in the decline in EU imports of travel services from the US.
The study underlined the importance of honoring the current trade agreement between the EU and the US, stating that any new tariff threats could create further uncertainty that hinders business activities on both sides of the Atlantic.
