EU Trade Surplus With US Plunges 58% as Tariffs Bite

The European Union's trade surplus with the United States collapsed by 58% in the first five months of 2026, dropping to €49.3 billion from €117 billion a year earlier, according to Eurostat data. The sharp decline underscores the impact of the Trump administration's 15% tariffs on most EU goods and the resulting 25% drop in European exports to the US.Source: elespanol

Key figures

• EU exports to the US fell by €65.8 billion (25%) year-on-year between January and May, while US imports to Europe rose slightly by 1.5%.Source: elespanol
• The deterioration in the US trade balance accounts for 78% of the EU's total swing from a €70.1 billion surplus to a €15.9 billion deficit over the period.Source: elespanol

Turberry exemptions

Under the July 2025 Turnberry agreement, the EU accepted US tariffs of 15% in exchange for Washington lifting its own duties. However, Brussels is now pushing for exclusions on around €150 billion worth of products — including wine, olive oil, cheese, pasta, medical devices, and machinery — arguing these goods are economically vital or have limited US domestic alternatives.Source: euronewses

The EU submitted a list to Washington after finally eliminating its own tariffs on US industrial goods on July 1, 2026, a prerequisite for negotiations. EU trade chief Matthias Jørgensen described the talks as "difficult" and noted that steel and aluminium, which face 50% US tariffs, will be even tougher to resolve due to US national security concerns.Source: euronewses

Outlook