The euro area's trade surplus narrowed in March, weighed down by lower exports amid geopolitical tensions, trade policy uncertainty and fresh tariff threats from the White House.
The surplus in trade in goods with the rest of the world stood at 7.8 billion euros, down from the revised surplus of 11.1 billion euros in February, according to Eurostat data published Tuesday. The latest figure came in higher than the consensus estimate of 5.4 billion euros.
"Compared with March 2025, when the surplus was EUR34.1 bn, the latest figure represents a sharp decrease of EUR26.3 bn. This decline was primarily driven by substantial reductions in the surpluses of the chemicals and related products group and the machinery and vehicles group," the statistical office said.
The decline also comes as euro area exports of goods to the rest of the world dropped 5.5% year over year to 265.3 billion euros. On the other hand, imports rose 4.4% to 257.4 billion euros.
For the European Union, the trade surplus amounted to 5.9 billion euros in March, lower than the 9.1 billion euros in the previous month and 34 billion euros a year before, largely impacted by a widening deficit in the energy group. EU exports fell 8.7% on an annual basis to 233.9 billion euros, while imports increased 2.7% to 228 billion euros.
Among the EU's main trading partners, its exports to the US saw the largest year-over-year drop at 37.1%, resulting in the trade surplus plunging to 13.5 billion euros from 40.4 billion euros. Exports to China also fell 2.3%, leading to a trade deficit of 32.6 billion euros.
Meanwhile, EU exports to Switzerland and the UK rose 10.1% and 6.9%, respectively, with higher trade surpluses.
Bloomberg News reported that EU officials are set to meet Tuesday to work on the final shape of legislation on a trade deal with the US. President Donald Trump recently threatened to increase tariffs on auto imports from the EU to 25% from 15% if a deal is not in place by July 4.
