EU Trade Surplus Narrows From 2025’s Pre-Tariff Surge

Euro-area trade data for February showed the EU’s goods surplus narrowed sharply to €9.1 billion ($10.7bn) from €22.9 billion a year earlier, reflecting the unwinding of firms’ export front-loading ahead of 2025 tariff threats. Exports fell 9.3% year-on-year while imports dropped 3.5%. Chinese imports into the EU rose 3.4% in February. The weaker external surplus and the larger drop in exports versus imports could weigh on euro demand and growth expectations, with potential implications for EUR/USD positioning and euro-area economic sentiment.