Key insights
- The EU trade surplus decreased significantly due to a sharp drop in exports to the U.S. following tariff implementations. While the Supreme Court initially struck down previous tariffs, new import levies are being planned. This trade friction could negatively impact US equities as it signals potential for reduced corporate earnings and increased input costs for US companies.
BRUSSELS, April 17 (Reuters) - The European Union’s trade surplus with the rest of the world shrank by 60% in February as exports to the United States dropped by more than a quarter, with U.S. import tariffs of 15% largely in place on EU goods.
EU exports as a whole were 9.3% lower in February than a year earlier, while imports were down 3.5%, EU statistics office Eurostat said on Friday.
The largest export decline was towards the U.S., with a drop of 26.4%, while imports from the United States were 3.2% lower. EU exports to China were also down.
A year ago, EU exporters had begun front-loading shipments to the U.S. in anticipation of President Donald Trump’s tariffs, inflating the export figures for early 2025 and potentially explaining February’s sharp decline.
Exports to the United States in February 2025 rose by 22.4% year-on-year.
On February 20, the U.S. Supreme Court struck down Trump’s sweeping tariffs, which he had pursued under a law meant for use in national emergencies. But only days later, the U.S. imposed a new temporary global import levy and is planning to reconstruct tariffs to replicate those agreed with the EU last year.