The State of U.S. Trade with the EU

Last Saturday, U.S. President Donald Trump threatened higher tariffs on the European Union over the Greenland dispute, prompting the EU to hold an emergency summit and reportedly plan retaliatory tariffs worth €93 billion. Against this backdrop, we're taking a closer look at the current state of trade between the EU and the United States.

Data from Eurostat shows that the United States runs a goods trade deficit with the EU. This means the EU exports more physical goods to the U.S. than it imports in return. This pattern does not extend to services, which are not shown here, and where the U.S. runs a trade surplus with the EU.

Trump has repeatedly criticized this trade imbalance, often pointing to motor vehicles as an example. According to Eurostat data, in the first three quarters of 2025, the EU exported around $32 billion worth of motor vehicles and vehicle parts to the United States, while importing just $8.1 billion in return. This gap reflects several factors. Firstly, U.S. manufacturers such as Ford, GM (Chevrolet, Cadillac, GMC) and Stellantis (Chrysler, Jeep, Dodge) largely design and produce vehicles for the U.S. market, with fewer models tailored to European demand. Secondly, the EU dominates the premium and luxury segment, resulting in a higher average vehicle value. Technical trade barriers, including differing safety and emissions standards, also make it more difficult for U.S. manufacturers to sell vehicles in Europe.

Beyond vehicles, the data highlights that pharmaceutical products, machinery and mechanical equipment and organic chemicals are some of the EU’s other major exports to the United States.