Updated: 19 October 2026

The United States and the European Union share one of the most important economic relationships in the world. Their businesses exchange medicines, machinery, aircraft, energy, digital services and investment on a scale that few other partnerships can match.
Yet US–EU trade is often discussed mainly in terms of tariffs, deficits and political disagreements.
Those disputes matter, but they tell only part of the story.
American and European companies depend on one another as customers, suppliers, investors and employers. Their commercial connections extend far beyond the goods moving through ports.
In 2026, changing trade policies and new agreements have brought renewed attention to this relationship.
Understanding its importance requires looking at what both sides trade, how their economies are connected and why even relatively small policy changes can have consequences across the Atlantic.

How Large Is US–EU Trade?

Trade between the United States and European Union reached approximately €1.77 trillion in goods and services in 2025, according to provisional figures published by the Council of the European Union.
That is equivalent to more than €4.8 billion in trade every day.
The relationship is not limited to a handful of major exporters.
It involves manufacturers, retailers, technology businesses, financial institutions and service providers operating across many industries.
The EU and US together account for a substantial share of global economic activity, making their commercial relationship important well beyond their own borders.

US–EU Trade in Numbers

Indicator	Value	Reference year
Total goods and services trade	Approximately €1.77 trillion	2025
EU goods exports to the US	€554.0 billion	2025
EU goods imports from the US	€354.4 billion	2025
EU goods trade surplus	€199.6 billion	2025
Mutual investment stocks	More than €4.8 trillion	2024

Sources: Eurostat and the Council of the European Union. Goods figures follow Eurostat's February 2026 release; investment figures refer to the stock of investment, not annual flows.

These figures show why the transatlantic relationship remains economically significant even when political disagreements arise.

What Does the EU Export to the United States?

The United States is a major destination for European goods.
In 2025, the EU exported €554.0 billion in merchandise to the American market, according to Eurostat.
Pharmaceuticals and medical products accounted for the largest share, representing approximately 29% of EU goods exports to the US.
Other important categories included road vehicles, industrial machinery, electrical equipment and power-generating machinery.
These exports reflect Europe's strengths in advanced manufacturing, specialised engineering and high-value industrial production.
The relationship is particularly important for countries with substantial manufacturing sectors, including Germany, France, Italy and Ireland.
However, export patterns vary considerably between EU member states.
A pharmaceutical manufacturer in Ireland faces different commercial pressures from a machinery producer in Germany or a food exporter in southern Europe.
This diversity helps explain why changes to American trade policy can affect European industries in very different ways.

What Does the United States Export to the EU?

American exports to Europe include a broad range of industrial and consumer products.
Eurostat recorded €354.4 billion in EU goods imports from the United States in 2025.
Major categories included pharmaceuticals, petroleum products, machinery, natural gas and transport equipment.
Energy has become an especially important part of the relationship.
American liquefied natural gas and other energy products have helped European countries diversify their supply arrangements.
US companies also supply European businesses with equipment, components and technology used in manufacturing and research.
These exports support American businesses while giving European buyers access to products and resources that may be difficult or costly to obtain elsewhere.
Trade is therefore not simply a contest over which side sells more.
It allows businesses and households to obtain goods from a wider range of suppliers.

Why Are Services So Important?

Goods attract much of the political attention, but services represent a major part of transatlantic trade.
Services include financial activities, software, consulting, telecommunications, intellectual property and other business operations.
American technology and professional-services companies are particularly active in European markets.
European firms also provide financial, engineering, transport and other services to American customers.
Unlike physical products, many services can be delivered digitally or through subsidiaries operating abroad.
This makes the relationship less visible than shipments of vehicles or machinery, but no less important.
Services also help explain why looking only at merchandise trade can create a misleading impression of the overall relationship.
The United States records a substantial services trade surplus with the EU, offsetting much of its deficit in goods.
For an accurate comparison, goods and services should be considered together using consistent statistical definitions.

Does the US Have a Trade Deficit with the EU?

Yes, the United States imports more goods from the European Union than it exports to the bloc.
From the European perspective, this appears as a goods trade surplus.
Eurostat estimated the EU's merchandise surplus with the US at €199.6 billion in 2025.
However, the balance looks very different when services are included.
The United States sells substantially more services to Europe than it buys from the EU.
According to European Commission figures, the US services surplus offsets most of the European goods surplus, leaving a much smaller overall difference.
It is also important to recognise that American and European agencies may report different bilateral trade totals.
Differences in valuation, exchange rates, data collection and statistical treatment can affect the results.
Figures from separate statistical systems should not be combined without checking their methodology.
A bilateral trade deficit is not, by itself, proof that one economy is losing.
It can reflect consumer demand, industrial specialisation, exchange rates and international investment.

Why Does Investment Matter as Much as Trade?

The economic relationship extends far beyond exports and imports.
American companies invest in European factories, research facilities, offices and distribution networks.
European businesses make similar investments in the United States.
In 2024, mutual foreign direct investment stocks exceeded €4.8 trillion, according to the Council of the European Union.
This figure represents accumulated investment positions rather than money invested during a single year.
It demonstrates how closely the two economies are connected.
A European company manufacturing products in America may employ American workers, purchase components from local suppliers and sell goods within the US market.
An American technology company operating in Europe may employ European engineers, purchase local services and serve customers across the continent.
These activities create economic connections that are not fully captured by trade statistics.
They also mean that political disagreements can affect businesses with operations on both sides of the Atlantic.

Which Industries Depend on Transatlantic Trade?

Several industries illustrate the depth of the relationship.

Pharmaceuticals and Healthcare

Medicines and medical products are among the most important goods traded between the EU and US.
Manufacturing, research and distribution frequently involve companies operating in both markets.
Changes to tariffs or regulatory requirements can affect costs and supply arrangements.

Automotive and Machinery

European vehicle manufacturers have significant commercial interests in the United States.
American companies also supply machinery, components and technology to European industries.
Complex production networks mean that trade restrictions can affect more than finished vehicles.

Energy

The United States supplies Europe with petroleum products and natural gas.
These commercial links have become increasingly important as European countries seek diverse energy sources.
Energy prices and supply arrangements can influence industrial competitiveness.

Technology and Digital Services

American technology businesses provide cloud computing, software and digital services across Europe.
European firms contribute industrial equipment, semiconductor manufacturing technology and specialised engineering.
Both sides benefit from access to each other's expertise.

What Changed in US–EU Trade in 2026?

The first quarter of 2026 brought a notable change in merchandise trade.
Eurostat reported that EU goods exports to the United States fell by 30.4% compared with the first quarter of 2025.
Exports to the US were valued at €119.4 billion during the quarter.
That was still enough to make America the EU's largest export destination.
The decline should be interpreted carefully.
EU exports had risen sharply in early 2025 before falling back later in the year, creating an unusually high comparison point.
Tariff uncertainty and changes in business behaviour also formed part of the broader economic environment.
However, the quarterly figures alone do not establish how much of the decline was caused by any single policy.
A year-on-year comparison can be affected by earlier stockpiling, changing demand and the timing of shipments.
The data nevertheless illustrates how quickly trade flows can shift when businesses face uncertainty.

What Happened to the EU–US Trade Agreement?

On 27 July 2025, the European Commission and the Trump administration announced a political agreement intended to reduce uncertainty over tariffs and trade.
A joint statement followed on 21 August 2025.
The agreement established a framework for further cooperation and changes to selected tariff arrangements.
During 2026, EU institutions approved measures implementing European tariff commitments under that framework.
These included removing remaining duties on certain US industrial goods and improving market access for specified agricultural and seafood products.
The European Commission stated that the agreement's implementation helped provide greater predictability for businesses.
However, a trade framework does not eliminate every disagreement.
Tariffs on particular goods, regulatory differences and new trade investigations can continue to create tensions.
Businesses must therefore distinguish between political announcements, formally adopted regulations and the duties that actually apply to their products.

How Do Tariffs Affect the Transatlantic Economy?

Tariffs increase the cost of importing goods covered by the relevant measures.
An American business importing European machinery may have to pay additional duties, while a European company purchasing American products may face different rules.
Businesses can respond by changing suppliers, adjusting prices or absorbing part of the cost.
These decisions can affect investment, employment and consumer spending.
The effects are particularly complicated when a product contains components sourced from several countries.
Our guide to how tariffs work and who pays them explains the mechanics.
Tariffs can also influence the prices households pay.
Our analysis of how Trump's tariffs affect consumer prices examines how import costs move through supply chains.
Trade disagreements do not necessarily become prolonged conflicts.
Governments can negotiate exemptions, revise policies or reach new arrangements.
However, persistent uncertainty can discourage investment even before additional duties take effect.

Could a US–EU Trade War Damage Both Economies?

A major trade dispute could affect businesses and consumers on both sides of the Atlantic.
European exporters depend on access to American customers, while US companies rely on European suppliers, consumers and investors.
Retaliatory tariffs could make goods more expensive and complicate international production.
Some domestic industries might benefit from reduced foreign competition, but businesses using imported materials could face higher costs.
The consequences would depend on the products affected and the duration of the dispute.
The possibility of negotiation also matters.
Because the two economies are so closely connected, both have incentives to preserve stable commercial relationships.
For more on the political background, read our analysis of Donald Trump vs the EU and the risk of a wider trade war.

Why Does US–EU Trade Matter Globally?

The United States and European Union are not isolated markets.
Their businesses participate in global supply chains involving Asia, the Americas and other regions.
Changes to transatlantic trade can therefore affect suppliers and customers far beyond Europe and North America.
The two economies also influence international standards, technology development and financial markets.
Their decisions about industrial policy, energy, digital regulation and trade can shape how companies operate worldwide.
A broader comparison of the US and EU economies helps explain their different strengths in technology, manufacturing and finance.
Despite occasional political disagreements, their commercial relationship remains a central part of the global economy.

US vs EU Trade: The Bottom Line

The United States and European Union are deeply connected through goods, services and investment.
Their trade relationship reached approximately €1.77 trillion in 2025, while accumulated mutual investment exceeded €4.8 trillion in 2024.
Europe exports more goods to America than it imports, but the United States maintains a substantial advantage in services trade.
These differences reflect economic specialisation rather than a simple contest with one winner.
Trade tensions and changing tariffs created challenges in 2026, yet the underlying commercial relationship remained extensive.
For businesses and consumers, the most important issue is not simply which side has a trade surplus.
It is whether the two economies can maintain predictable conditions for investment, production and exchange.
Their continued cooperation matters not only to Americans and Europeans, but also to the wider global economy.

Frequently Asked Questions

How much do the US and EU trade with each other?

Provisional EU figures put bilateral goods and services trade at approximately €1.77 trillion in 2025.

Does the EU have a trade surplus with the United States?

The EU has a substantial surplus in goods trade. However, the United States records a large services surplus, reducing the overall imbalance.

What are the EU's biggest exports to America?

Major categories include pharmaceuticals, vehicles, industrial machinery and electrical equipment.

Why is the US–EU trade relationship important?

It supports businesses, employment, investment and supply chains across both economies, while influencing global trade and economic standards.

Sources and Further Reading

Eurostat — Trade in Goods with the United States in 2025
Official figures for EU merchandise exports, imports and leading product categories.
Eurostat — Exports to the US Dropped by 30% in Q1 2026
Data on EU goods exports to the United States during the first quarter of 2026.
Council of the European Union — EU–US Trade: Facts and Figures
An overview of bilateral trade in goods and services.
Council of the European Union — EU Relations with the United States
Official information on trade, investment and implementation of the bilateral framework.
European Commission — EU–US Trade Relationship: One Year After the Deal
An assessment of the trade relationship and the agreement reached in 2025.
Office of the United States Trade Representative — European Union
US government data and information on trade with the EU.