The EU's trade surplus fell to €12.9 billion in December 2025 from €13.9 billion a year earlier, according to Eurostat data released today. The decline was driven by falling exports to the United States — the bloc's largest export market — which dropped 12.6% year-on-year, pushing the bilateral surplus down by roughly a third to €9.3 billion.
Meanwhile, the EU's trade deficit with China widened to €26.8 billion from €24.5 billion, as Chinese imports continued to rise across categories from consumer goods to advanced manufactured products. Machinery and vehicle exports — historically the engine of European trade growth — kept declining, alongside weakening chemical sales.
Economists note the trend reflects a structural shift: US tariffs imposed since early 2025 are forcing American importers to source elsewhere, while Chinese goods diverted from the US by tariffs of up to 135% are flooding European markets instead. The eurozone economy grew 0.3% in Q4 2025, with domestic consumption and AI-related investment partially offsetting the trade drag.