How Much Does the U.S. Trade with the EU?

The EU is one of America’s largest trading partners, accounting for $555 billion in goods traded in 2024. The U.S. exported $341.9 billion worth of goods from the EU. Imports from the EU amounted to $555.6 billion, making the trade deficit $213.6 billion, one of the highest ever on record, according to the U.S. Census Bureau.

Trade relations between the United States and the European Union (EU) hit a bit of a rough patch when President Donald Trump imposed tariffs during his first term on many goods made in Eurozone countries. Numerous other political moves have affected U.S./EU trade over the years, however.

Key Takeaways

• The European Union (EU) is one of the largest and most important trading partners with the United States.
• The U.S. is the EU’s largest trading partner.
• Germany and the Netherlands are the largest importers of American products in Europe.
• Tariffs and protectionism can lead to harmful trade spats despite the large volume of trade between the two regions.

Example of U.S./EU Trade

Trade relations between otherwise friendly regions can take a turn for the worse if a nation feels that a key industry is threatened by unfair practices abroad.

The first Trump administration proposed additional duties on EU exports that were worth $11 billion in retaliation for a bloc granting aircraft manufacturer Airbus (EADSY) what they viewed to be illegal subsidies. The World Trade Organization (WTO) ended up ruling that the subsidies hurt the U.S. by causing an Airbus rival, Boeing Co. (BA), to lose sales in an uncompetitive manner.

The WTO also ruled that the EU failed to comply with its rulings, paving the way for the U.S. to impose countermeasures. The U.S. was awarded $7.5 billion as compensation in 2019.

The EU was then authorized in 2020 to impose tariffs of $4 billion due to illegal subsidies granted by the U.S. government to Boeing. The list of EU products covered by additional duties included aircraft, helicopters, and fuselages from France, Germany, Spain, and the United Kingdom as well as a variety of non-airline-related items such as cheeses, fruits, jams, wines, and yarns from any of the 28 member states of the Eurozone.

This airline example proved disruptive to the larger context of international trade between the U.S. and the EU. The Biden administration sought to undo many of the tariffs imposed by President Trump. A deal was reached in October 2021 to roll back several of the tariffs on European aluminum and steel.

Top Imports and Exports

The U.S. was the top importer of pharmaceutical and medicinal products from the EU in 2023, representing 33.2% of their exports at €92 billion.

Manufactured goods to the U.S. including machinery but not electrical and computer equipment represented 89% of the EU’s exports in 2023.

Motor vehicle-related imports were equal to $27 billion in 2022 and accounted for around 10% of all goods imported from the EU. This category includes cars, motor vehicle bodies, trailers, and car parts.

Important

Trade between the U.S. and EU dipped in 2020 compared to previous years due to the COVID-19 pandemic which affected international trade around the world.

The largest U.S. exports to the EU in 2022 were mineral fuels and oils at $108.94 billion, machinery including nuclear reactors at $50.13 billion, and pharmaceutical products valued at $37.89 billion.

What Does the World Trade Organization Do?

The World Trade Organization (WTO) monitors and manages trade between nations. These countries negotiate agreements with the WTO and the agreements are binding when signed. The WTO says that its goal is to “improve people’s living standards, create better jobs, and promote sustainable development.”

What Country Does the U.S. Trade With Most?

Mexico was the top U.S. trading partner in November 2024 followed by Canada, China, Germany, then Japan.

How Did COVID-19 Affect International Trade?

One study reported that the number of cargo ships departing their ports of origin decreased by 29% from 2019 through April 2020. Another study pointed out that only 22% of manufacturing jobs could be performed from home.

The Bottom Line

The EU and U.S. have an intimate relationship when it comes to trade. The EU is one of the largest American trading partners and the U.S. is the EU’s largest trading partner. Tariffs, legislation, and other measures of protectionism have affected the balance since 2010, however. Trade also dropped in 2020 due to the COVID-19 pandemic.

The EU’s imports and exports with the United States both increased between January 2022 and December 2023, however.