Tariff Tensions Hit EU-U.S. Trade
The European Union’s exports to the United States fell by more than 10 percent year on year in June, according to Eurostat data released on Monday. Rising U.S. tariffs have put significant pressure on European businesses, reshaping trade flows and prompting strategic adjustments.
On a month-on-month basis, Eurozone exports dropped 2.4 percent, while imports climbed over 3 percent. As a result, the seasonally adjusted trade surplus narrowed sharply to €2.8 billion in June, down from €15.6 billion in May.
Since the start of the year, U.S. tariff hikes have targeted a range of EU products: a 10 percent reciprocal levy on many goods, 25 percent duties on carmakers, and up to 50 percent on steel and aluminum. In August, a further 15 percent tariff was imposed on most EU exports—well above the previous average of under 5 percent.
These policy shifts triggered a surge in shipments ahead of new duties, followed by a steep decline as tariffs kicked in. “A stronger euro, high U.S. tariffs, global trade uncertainty, and intensifying competition could continue to weigh on European exports,” warns Carsten Brzeski, global head of macro at ING Research.
Trade disruptions are already visible at major ports. The Port of Hamburg saw U.S. trade volumes drop nearly 20 percent in the first half of 2025. Meanwhile, freight lanes with the Far East and the Baltic Sea region recorded growth, underscoring how businesses are rerouting to avoid steep tariffs.
Looking ahead, analysts say companies will need to diversify markets, adapt supply chains, and explore emerging trade partnerships to counterbalance U.S. tariff pressures and secure sustainable growth.
Reference(s):
cgtn.com
