EU exports to the US dropped sharply as new Trump tariffs and a stronger euro hit trade, slashing Europe's surplus and weighing on key sectors like cars and pharmaceuticals.
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European exports to the United States have taken a hit in recent months, dragged down by higher tariffs from Washington and a stronger euro, making European goods pricier for American buyers.
According to UN Comtrade data, in July 2025 the US imported $53.7 billion (€46.6bn) worth of goods from the European Union, down 10% from July last year.
Over the past three reported months, EU exports to the US totalled $168.1 billion (€147.1bn), down sharply from $213.2bn (€197.3bn) in the previous quarter. That figure had nonetheless been boosted by a front-loading rush in March, as US firms scrambled to import foreign goods ahead of new tariffs imposed on 2 April.
Pharma and auto exports lead the decline
The biggest drops came in key European export sectors like pharmaceuticals and cars. In July 2025, US imports of European pharmaceuticals fell to $9.5bn (€8.2bn), compared to $11.5bn (€10.6bn) a year earlier.
Vehicle exports suffered even more. US imports of European cars dropped to $4.68bn (€4bn), down from $6.2bn (€5.7bn) in July 2024.
The three-month trend shows the downward trajectory even more clearly. Car exports totalled $13.6bn (€11.9bn) in this period, versus $16.23bn (€15bn) in the previous quarter, and $19.3 billion (€17.9 billion) a year earlier.
The slide in exports has also taken a toll on Europe’s trade surplus with the US. In July, the bloc recorded a surplus of $11.97bn — nearly half the $23.6bn seen a year earlier.
Looking at the three-month trend, the EU’s trade surplus with the US fell to $40.4bn (€35.4bn), down from $85.8bn (€79.7bn) in the previous quarter and $61.9bn (€57.2bn) in the same period of 2024.
Tariffs bite, but so does a stronger euro
Two main forces are dragging on transatlantic trade: tariffs and currency.
On 2 April — dubbed “Liberation Day” by the US administration — President Trump imposed a 20% tariff on all EU imports, later trimmed to 15% in July. While still well below the tariffs faced by other US trade partners like India and Brazil, it remains five times higher than last year’s rate.
For cars, the US has agreed to charge a 15% tariff, down from a 27.5% rate. But the tariffs aren’t acting alone.
The euro has also gained significant ground against the dollar this year, making European exports more expensive for American buyers.
The single currency has strengthened from $1.02 at the start of the year to $1.18 in September.
Compared to July 2024, the euro has gained over 8% — a rise that's steadily eroding price competitiveness.
“The headline tariff of 15% in the US-EU trade deal is marginally higher than our assumption in the spring, but it should reduce the trade policy uncertainty that has dominated the outlook in recent months,” said Nicola Nobile, economist at Oxford Economics.
“Still, there are too many unknowns about US trade policies for uncertainty to fade entirely.”
With both political and currency headwinds blowing strong, the second half of 2025 could remain challenging for European exporters targeting the world’s largest economy.
