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The US trade deficit in goods with the EU declined by just 7% in 2025, despite tariffs imposed by the White House to narrow the gap, according to a study released Monday by the American Chamber of Commerce to the European Union (AmCham), highlighting the deep trade interdependence between the two partners.
The report comes as Washington and Brussels remain at odds, due to the White House’s current aggressive trade policy, which includes tripling US tariffs on the bloc.
A lopsided agreement was struck last summer between EU Commission president Ursula von der Leyen and US president Donald Trump, under which the US imposed 15% tariffs on EU goods, while the EU agreed to eliminate its own tariffs and ramp up investment in the United States.
But the deal remains frozen as EU lawmakers await clarity from Washington, after US authorities launched new probes following a February Supreme Court ruling declaring the 2025 tariffs illegal.
Despite tensions, trade between the two sides remains robust. The report found US–EU goods trade hit a record $1.05 trillion in 2025.
The study said decoupling would be costly for Europeans.
“Some Europeans are right to want to mitigate excessive dependencies, but wrong to think decoupling from America would cost little,” the authors said, adding: “Some Americans are right to want Europeans to do more on security, but wrong to think they don’t need Europe.”
The EU barely reduced its exports to the US despite tariffs, the study said. The US exported $414 billion in goods to the EU and imported $633 billion, resulting in a goods trade deficit of $219 billion in 2025 — about $17 billion, or 7%, lower than the $236 billion deficit recorded in 2024, even though Trump’s tariffs aimed primarily at reducing it.
The gap shrinks when services are included, as the US runs a surplus in that sector.
“We estimate that the overall US goods and services trade deficit with the EU in 2025 was $150 billion – significant, but less than its goods trade deficit of $219 billion,” the study said.
According to AmCham, this deficit is more than four times smaller than the US trade deficit with the Asia-Pacific region.
Foreign investment signals close links
“As new global economic arrangements unfold, US-European linkages remain deep and mutually beneficial,” the authors of the report wrote.
Foreign investment data also point to close market ties, with Europe and the US accounting for more than half of each other’s foreign investment.
Between 2009 and 2025, Europe accounted for 56% of US foreign direct investment (FDI) worldwide. Europe’s share of global FDI in the US by ultimate beneficial owner was also 56% in 2024.
“The United States is the largest single source of inward FDI into the EU, ahead of even the largest European countries,” the report said.