Exports to the United States have fallen by almost a third during the first three months of 2026, as the European Union prepares to implement its part of the trade deal with Washington.
The impact of tariffs imposed by US President Donald Trump on EU trade is already becoming apparent, creating a negative trend that ranks second in severity, right after that with Iran, euronews writes.
In the first three months of 2026, the European Union recorded a 30 percent drop in the value of goods exchanged with the United States, compared to the same period last year, according to Eurostat data.
In August 2025, the US pushed the EU towards reaching a trade deal, imposing a 15 percent tariff on several categories of goods, media reports.
The administration of President Donald Trump has justified this measure by referring to a trade deficit that, according to it, exceeds 300 billion euros in relation to the European Union.
Washington’s deficit in goods trade with the European Union is real, although it is estimated at around 200 billion euros.
However, this deficit is partially offset by US exports of services to the EU, which significantly narrows the overall trade balance. As a result, the European Union’s total trade surplus remains relatively small, at around €21 billion.
Where else has trade also fallen?
The tariffs have affected some of the key sectors of the European economy, including the car industry, pharmaceuticals, semiconductors, as well as food products such as wine and cheese.
Meanwhile, as the European Union prepares to implement its part of the trade deal, the United States still remains the largest export market for the bloc, with around 120 billion euros, accounting for roughly 19 percent of the total value of EU goods exports.
However, the decline in trade with Washington has affected the overall performance of European exports, leading to a decrease of around 9 percent in the value of exports to the rest of the world compared to the first quarter of 2025.
The European Union’s exports also fell with other major partners, although more moderately compared to the United States. Trade fell with China and Turkey by 8 percent each.
However, the most pronounced decline was recorded with Iran, where exports suffered a 44 percent decrease, mainly as a result of sanctions related to the nuclear program, Tehran’s support for Russia and human rights violations.
On the other hand, there are also positive developments: exports to Indonesia increased by 23 percent in the first quarter of 2026.
This increase is linked to the finalization of a new trade agreement known as CEPA (Comprehensive Economic Partnership Agreement), which aims to reduce or eliminate tariffs on most European Union exports and simplify customs procedures.
The agreement is expected to enter into force later this year or in 2027.
European Union exports have also increased, albeit more slowly, to India by 1.8 percent and to the United Kingdom by 2.3 percent.
After the United States, the EU’s second largest export market remains the United Kingdom, with 14 percent of exports, followed by Switzerland with 9 percent, China with 7 percent and Turkey with 4 percent.
New tariffs on the horizon?
However, the trade war saga between Europe and Washington may not be over yet.
Last month, US President Donald Trump threatened to impose additional tariffs of 10 percent or more on imports from the European Union and other trading partners.
He accused the bloc of not sufficiently addressing trade in goods produced with forced labor, claiming it harms American commercial interests. The European Union has rejected these claims, calling them “unfounded.”
Trump has also complained that Brussels has yet to fulfill its commitments under the trade agreement reached in July 2025.
He had set the European Union a deadline of July 4 to approve its part of the deal, while the bloc is now preparing for its approval, with a vote scheduled for June 16.
Under the agreement, the EU is expected to remove tariffs on US industrial goods and provide preferential market access for certain seafood and agricultural products. These include, according to the White House, nuts, dairy products, fresh and processed fruits and vegetables, processed foods, seeds for planting, soybean oil, as well as pork and bison meat. /Telegraph/