Euro area trade surplus narrows more than expected

The Eurozone’s trade surplus narrowed sharply to €7 billion in June 2025, down from €20.7 billion in the same month a year earlier and falling short of market expectations of €13 billion.

The weaker balance reflected a widening gap as imports grew 6.8% year-on-year, while exports managed only a modest 0.4% increase, highlighting ongoing pressure on the region’s external accounts.

Exports reached €213.7 billion, with modest gains in machinery and vehicles (+1.2%) and food and drink (+4.1%) offset by steeper declines in chemicals (-1.4%), energy (-17.2%), and raw materials (-5.3%). By trading partner, shipments to the United States fell 10.3% and those to China dropped 12.7%, reflecting weaker demand and tariff-related disruptions. On the other hand, exports to the United Kingdom rose 7.4% and to Switzerland 13.5%, providing some relief.

Imports expanded to €205.7 billion, driven by strong demand for machinery and vehicles (+9.2%), chemicals (+15.7%), food and drink (+17.1%), and raw materials (+11.2%). Purchases from major partners increased sharply, including from the United States (+16.4%), China (+16.7%), and Switzerland (+10.2%).

In the broader European Union, the trade surplus also narrowed, falling to €8 billion from €20.3 billion a year earlier, confirming the trend was not limited to the eurozone.

The figures underscore the challenges facing the Eurozone’s external sector. A mix of weaker export competitiveness, strong import demand, and global trade frictions has reduced surpluses that traditionally provided a buffer to growth.

With energy exports continuing to slide and demand from key partners subdued, the region is increasingly dependent on intra-European trade and secondary partners to sustain momentum. Looking ahead, the trajectory of the trade balance will hinge on whether global demand improves in the second half of the year and whether ongoing U.S.–China and U.S.–EU tariff negotiations bring any relief to European exporters.