Euro Area Trade Surplus Narrows in November

Euro Area trade surplus narrowed to €12.6 billion in December 2025 from €13.9 billion a year earlier as imports grew faster than exports, pointing to softer external balance despite rising trade activity. Exports rose 3.4% year on year to €234.0 billion while imports increased 4.2% to €221.3 billion, reducing the overall surplus by €1.3 billion. The decline was driven mainly by smaller surpluses in chemicals (€16.5 bn vs €20.2 bn in December 2024), machinery and vehicles, other manufactured goods and raw materials. By contrast, the energy deficit improved, narrowing to €19.1 billion from €24.5 billion a year earlier. For the full year 2025, the bloc recorded a €164.6 billion surplus, down slightly from €168.9 billion in 2024, as exports rose 2.4% but imports increased faster at 2.7%.

European Union ambassadors agreed Sunday to step up efforts to dissuade U.S. President Donald Trump from imposing tariffs on European allies, while preparing retaliation if duties proceed, diplomats said. Trump vowed on Saturday to impose escalating tariffs from February 1 on Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain, and Norway “until the U.S. is allowed to buy Greenland,” a move that major EU states condemned as blackmail. EU leaders will debate responses at an emergency Brussels summit on Thursday. Options include a tariff package on €93 billion of U.S. imports, set to activate February 6 after a six-month suspension, or deploying the never-used “Anti-Coercion Instrument” (ACI), which could restrict U.S. access to public tenders, investments, banking, or services trade, areas where Washington runs a surplus, notably in digital services.

The Eurozone’s trade surplus narrowed to €9.9 billion in November 2025 from €15.4 billion a year earlier, below market expectations of €15.2 billion, as exports fell 3.4% while imports decreased 1.3%. In the broader EU, the trade surplus also fell to €8.1 billion from €11.8 billion. EU exports dropped 4.4% to €213.8 billion, due to lower sales of machinery & vehicles (-1.3%), chemicals (-12.8%), and food & drink (-1.6%). Exports decreased to the US (-20.3%), the UK (-6%) and China (-1.2%), but rose to Switzerland (6.7%). Meanwhile, imports fell 2.9% to €205.7 billion, mainly due to lower purchases of energy (-22.5%) and chemicals (-4.6%). On the other hand, imports rose for machinery & vehicles (3.3%). Imports from key partners fell, including the US (-7.1%), the UK (-4.7%), and Switzerland (-1.9%). However, imports from China rose 3.8%.