Record EU-US Trade Masks Pressure on Auto Industry

Trade in goods between the EU and the US reached a record €875bn ($998bn) last year despite mounting tariff pressures. According to a study by the German Economic Institute (IW), EU exports to the US rose 7.7% to €580bn ($661bn), while imports from the US increased 2.2% to €295bn ($336bn). As a result, the EU's trade surplus widened to nearly €285bn ($325bn).

However, IW economist Samina Sultan warned that the headline figures mask significant damage in sectors hit hardest by tariffs imposed by the administration of President Donald Trump. The automotive industry has borne the brunt of the measures.

EU exports of cars and auto parts to the US fell 20.4% in 2025, while Germany alone recorded a decline of 18.9%. Ireland drove overall export growth, posting a 52.7% increase thanks to pharmaceutical and chemical products that were exempt from tariffs.

Transatlantic trade in services also reached a record €865bn ($987bn). In that category, however, the EU recorded a deficit of €178bn ($203bn). Intellectual property fees accounted for more than 40% of EU service imports from the US, rising 13.7%.

(Reuters, Max)