US President Donald Trump says the US is disadvantaged in global markets and wants to cut the trade deficit with tariffs. The 27 EU member states together are the United States’ largest trading partner. Below are key questions and answers on trade disputes and mutual dependence.
How large is trade between the EU and the US?
Together the EU and the US make up more than 40% of global economic output and nearly one-third of world trade. In 2024 they traded goods worth over $975 billion (€867 billion). Including services, total trans-Atlantic trade reached €1.68 trillion ($1.97 trillion) in 2024.
Does the US run a trade deficit with the EU?
Yes. The US imports substantially more goods from the EU than it exports there. The goods deficit widened from €156 billion in 2023 to €197 billion in 2024. Globally, the US trade deficit totaled roughly $1.17 trillion. The EU posts large surpluses in vehicles and pharmaceuticals; the US posts surpluses mainly in oil, gas and coal.
What about trade in services?
The US records a substantial services surplus with the EU, driven by big tech companies and by financial and IT-related services, especially licensing revenues. In 2024 the US services surplus with the EU was about €148 billion. When goods and services are combined, the overall US deficit with the EU shrinks to roughly €50 billion, making the trans-Atlantic relationship more balanced than often portrayed.
Where is the US vulnerable in trade disputes?
The rising importance of digital services makes the US vulnerable to tariffs or taxes in that sector. The EU’s Anti-Coercion Instrument (ACI) is designed to protect member states from economic coercion and could be used in retaliation, though it has not yet been deployed.
Does the US need the EU as an export market?
Yes, notably for energy. The US runs large surpluses in energy exports. Since Russia’s 2022 invasion of Ukraine, Europe sharply increased imports of US liquefied natural gas (LNG). Purchases reached 81 billion cubic meters in 2025, and more than half of US natural gas exports now go to the EU. Disruptions would therefore hurt both European energy supplies and US LNG producers and gas companies.
How exposed is US agriculture?
Soybeans illustrate exposure to disruption. The US is the world’s second-largest soybean producer after Brazil; China and the EU are among its biggest buyers. EU countertariffs discussed at one point, totaling €93 billion, included levies on soybeans. Such measures could harm US farmers and exports while the EU might offset losses by importing more from Brazil.
Does the US rely on Europe to finance its debt?
Yes. The US has the largest public debt in the world. On January 7 total federal debt stood at $38.4 trillion, of which $6.79 trillion (17.7%) is held by foreign creditors. As of November 2025 Japan was the largest foreign holder at $1.2 trillion, followed by the United Kingdom. Taken together, European creditors hold nearly half of all US debt held abroad.
Do Trump’s tariffs weaken the dollar?
Tariffs can raise inflation risks in the US; disputes over trade policy, budget deficits and interest-rate moves add to global uncertainty and can weaken the dollar. Experts expect the dollar’s decline versus the euro seen recently to continue into 2026, particularly if the US Federal Reserve cuts rates further after lowering its benchmark rate from 4.25% to 3.75% in 2025.
A weaker dollar has mixed effects: it makes US exports cheaper and more competitive but raises import costs and inflation. For the EU, a weaker dollar lowers the euro price of US energy imports, helping to curb inflation and corporate energy costs; at the same time it makes EU exports to the US more expensive, hurting European exporters.
This article was originally written in German.