US Tariffs Drive Steep Drop in EU Exports for Second Consecutive Month
EU exports to the United States fell sharply for the second consecutive month, driven by the sweeping tariffs imposed by the Trump administration, with the bloc's trade surplus shrinking by approximately 60%. The data underscores mounting pressure on European exporters and raises fresh concerns about eurozone growth prospects. Trade negotiations between Brussels and Washington remain unresolved.
New European Union trade data showed the bloc's surplus with the United States shrank by roughly 60% as US-bound exports declined for the second month running under the weight of Trump administration tariffs. The figures confirm that American import duties are inflicting real damage on European manufacturers, with Germany — the eurozone's largest exporter — particularly exposed given its reliance on US demand for autos and industrial machinery.
Trade talks between Brussels and Washington remain deadlocked, with no interim agreement in sight. European Commission officials have signaled openness to negotiations but have yet to secure meaningful concessions from the US side. The data lands as the German industry lobby BDI separately warned that German industry faces stagnation in 2026, compounding the pressure on policymakers.
For markets, the deteriorating export picture adds a fresh downside risk to eurozone growth forecasts. Several economists now expect the European Central Bank to accelerate its rate-cutting cycle if trade headwinds persist into the second half of the year. DAX futures and euro-denominated assets face heightened volatility in the sessions ahead.
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