EU-U.S. Trade Levels Out Between Goods and Services

Are trade relations between the European Union and the United States really as lopsided as U.S. President Donald Trump claims? According to figures from Eurostat, the relationship is not entirely balanced, but also nowhere near as one-sided in favor of the EU as Trump has characterized it.

According to the data, the EU exports significantly more goods to the United States by value than it imports from there – the corresponding trade balance is positive in favor of the EU. However, the situation is exactly the opposite for services: Here, the EU has a trade deficit with the U.S. because the country sells significantly more services to the EU than the EU sells to the United States. Service imports include fees for the use of intellectual property as well as telecommunications, IT, and information services. The overall U.S. trade deficit with the EU has decreased significantly since 2020 and stood at $58 billion in 2024.

If the U.S. imposes tariffs on goods from European companies, these products will become more expensive in the country and sales and consecutively imports could fall. On Sunday, both parties agreed on a general tariff rate of 15 percent on EU imports to the U.S. - below the threatened 30 percent but still much higher than before Trump started his reloaded trade war. U.S. tariffs in other parts of the world could also indirectly burden the EU. Affected countries could redirect their goods originally destined for the U.S. to Europe instead, which would intensify competition for European companies.

In addition, the interconnectedness of the global economy could lead to disruptions in the supply chains of European companies, making certain products more difficult and expensive to procure. Uncertainty about possible tariffs and their consequences could also cause companies to postpone investments, which in turn would further dampen economic growth.