Trade in goods between the European Union and the United States hit a record €875 billion ($1.00 trillion) last year despite tariffs, according to a study released on Friday. The research conducted by the German Economic Institute (IW) revealed a 7.7 percent increase in EU exports to the US, amounting to €580 billion, while US imports into the EU rose by 2.2 percent, reaching €295 billion. This surge led to the EU’s trade surplus climbing to nearly €285 billion.
The study noted that some of this growth was due to front-loading of exports before tariffs were implemented in April, resulting in adverse effects on European manufacturing. Particularly, EU car and parts exports to the US experienced a significant decline of 20.4 percent in 2025. Germany, being a major player in EU auto exports to the US, saw an 18.9 percent decrease in exports.
In contrast to the overall trend, Ireland saw a remarkable 52.7 percent increase in exports, driven by pharmaceutical and chemical products that were exempt from tariffs. Most EU member states, except for Ireland, reported a decrease in their goods exports to the US. Among the few countries showing growth were the Czech Republic (+5.1 percent), Italy (+7.2 percent), Denmark (+10.6 percent), and Finland (+10.8 percent).
Additionally, transatlantic services trade reached a record high of €865 billion, with the EU facing a deficit of €178 billion in that sector. The study highlighted that the transatlantic trade relationship becomes more balanced when considering both goods and services trade, contrasting the EU’s services deficit with its goods surplus.
Notably, intellectual property fees, which include software licenses, patents, and trademarks, accounted for over 40 percent of EU service imports from the US, registering a 13.7 percent increase. Although the services sector has been relatively shielded from US tariffs, the trade conflict has had a negative impact, leading to an approximate 8 percent decline in EU imports of travel services from the US.
The study emphasized that the Turnberry trade deal between the EU and the US favored the US asymmetrically but remained a viable solution that should be respected by both parties. The IW warned against new tariff threats, stating that they would only introduce additional uncertainty that hinders business activities on both sides of the Atlantic.