EU trade surplus shrinks 60% as US exports fall due to tariffs

The EU's trade surplus plunged about 60% in February as exports tumbled, driven chiefly by a 26.4% collapse in shipments to the United States after U.S. import tariffs (about 15%) were largely in place. Eurostat said overall EU exports were down 9.3% year‑on‑year in February while imports fell 3.5%. Part of the sharp drop reflects front‑loading of shipments into early 2025 ahead of tariff changes: exports to the U.S. had risen 22.4% in February 2025. Policy developments — including a U.S. Supreme Court decision on sweeping tariffs on Feb. 20 and subsequent imposition of a temporary global import levy while new tariff measures are designed — are weighing on trade flows. The data suggest downside pressure on the euro and potential FX volatility (EUR/USD) as markets price the economic impact of sustained U.S. trade measures on EU demand.