EU exports to US plunge after tariff agreement bites

Exports of goods from the European Union to the United States dropped sharply in August following the implementation of a new trade agreement that introduced 15% tariffs on most EU-origin goods entering the US market.

According to data released by Eurostat, EU exports to the US fell by 26% month-on-month to €32.9 billion (approximately $38.3 billion), marking the lowest level since August 2021. On an annual basis, exports were down 22%, Caliber.Az reports.

The downturn follows a July agreement between EU and US authorities that imposed higher tariffs on a broad range of European products, significantly affecting transatlantic trade flows. The impact was immediately visible in August's trade figures.

Overall, seasonally adjusted exports from the EU declined by 1.2% in August compared to July, while imports fell by a larger margin of 2.1%. On a year-on-year basis, EU global exports dropped 6.7% to €183.6 billion, while imports fell 4.9% to €189.4 billion. This resulted in a goods trade deficit of €5.8 billion, more than double the €2.4 billion deficit recorded in August 2024.

Trade data from the eurozone mirrored this trend, with exports declining 4.7% year-on-year to €205.9 billion and imports falling 3.8% to €204.9 billion. The eurozone recorded a goods trade surplus of €1 billion, a significant decrease from €3 billion in the same period last year.

By Vafa Guliyeva