EU-U.S. Trade Hits Record High Amid Hidden Sectoral Crises

The German Economic Institute reports that EU exports to the U.S. jumped 7.7% to reach €580 billion, while imports grew by 2.2% to €295 billion. This growth remains unevenly distributed. Germany, the bloc’s industrial engine, saw its exports to the U.S. plummet by 18.9%, fueling a 20.4% decline in total EU automotive and parts exports. Conversely, Ireland leveraged tariff-free trade in chemicals and pharmaceuticals to secure a 52.7% export increase.

Services trade tells a similarly complex story. Despite reaching a record €865 billion, the EU faces a persistent €178 billion deficit in the sector. Intellectual property fees, including software and patent licenses, account for more than 40% of EU service imports from the U.S. Furthermore, the broader trade climate appears to have dampened personal mobility, with European travel to the U.S. dropping by approximately 8% last year.