European trade surplus narrows amid rising US tariffs and competition from China
The EU trade surplus fell in December as US tariffs hit exports and Chinese imports rose. Resilient domestic demand and AI investment support modest growth.
The European Union trade surplus narrowed in December as a combination of new trade barriers in the United States 
US and increased competition from China 
CN weighed on the bloc's economic performance. According to data released by Eurostat, the surplus fell to €12.9 billion from €13.9 billion on a year-on-year basis, marking a significant shift for a region where net exports have long served as a key pillar of euro-zone growth.
US and increased competition from China CN weighed on the bloc's economic performance. According to data released by Eurostat, the surplus fell to €12.9 billion from €13.9 billion on a year-on-year basis, marking a significant shift for a region where net exports have long served as a key pillar of euro-zone growth.The decline follows a raft of tariffs announced by the United States in early 2025. During this period, U.S. exports dropped 12.6%, and the trade deficit with China widened to €26.8 billion as rising Chinese imports increased competition and crowded out domestic production. This dual pressure has particularly affected Germany 
DE, which remains a central hub for the continent's industrial output.
DE, which remains a central hub for the continent's industrial output.
