EU Trade Surplus Narrows Amid Tariff Impact on U.S. Exports

The European Union's trade surplus has continued to shrink, highlighting challenges to its economic model. According to Jin10, data released on Friday showed that the EU's trade surplus decreased from €13.9 billion in December of the previous year to €12.9 billion. This decline is attributed to a drop in exports to the United States, affected by tariffs, and a surge in international imports that have impacted local production. The EU's long-standing export growth drivers, such as machinery and automobile sales, have seen a continuous decline, with chemical sales also experiencing a downturn. Exports to the EU's largest market, the United States, fell sharply by 12.6% year-on-year, reducing the surplus by one-third to €9.3 billion. Since the U.S. announced a series of tariffs in early 2025, export data has shown volatility. However, when accounting for this volatility, the trend indicates a significant decline in sales. Rising prices have forced U.S. importers to cut back on purchases or seek alternative suppliers.