The euro area trade surplus in June 2025 stood at £6 billion, compared to £17.9 billion at the same time last year. Exports to the rest of the world rose by 0.4% for a total of £204.6 billion, while imports rose by 6.8% to £198.6 billion. The decline was also driven by the recent drop in chemical production, which saw exports decrease by 1.4% and imports grow by 15.7%. 

This is due to weak demand and decreased business confidence in domestic production, as well as costs, which are much higher than those of foreign producers. This decreases export competitiveness and encourages foreign imports, according to a recent report by European chemical trade association Cefic. 

Exports to the UK grew by 7.4% compared to June 2024 while imports decreased slightly; trade with India and Japan, two of the EU’s most important Asian trading partners, also decreased, while both the US and China saw decreased exports and increased imports. 

Lower exports to the US might be due to the recently enacted tariffs, which a recent controversial trade deal negotiated down to 15% from a threatened 20%. However, car tariffs – which were also meant to be capped at 15% according to the announced terms of the deal – still stand at 27.5%, and the 15% on all other imports is much higher than the average of 1.2% in place before Liberation Day. 

The EU-US tariff deal is reportedly far from being finalised despite the announcement last month, with discussions stalling on digital laws (according to the Financial Times) and car duties (according to the German government). 

The report comes as recent economic data paints a picture of a resilient EU that may be struggling to grow: GDP grew by 0.2% in Q2, but industrial production decreased by 1% compared to May, driven by shrinking industries in Eastern Europe but bolstered by a 4.6% increase in energy production, an area in which the EU is working to become more self-sufficient.