The EU, Between America and China

The European Union’s trade balance has experienced significant fluctuations over the last three years. In July 2021, the EU maintained a robust annualized trade surplus of €207 billion. However, this surplus dramatically shifted to a deficit of -€446 billion by December 2022, before recovering to a surplus of €151 billion by August 2024. These fluctuations largely result from external pressures, such as the energy crisis sparked by the Ukraine War and shifts in trade dynamics with China. Depending on the outcome of the upcoming U.S. election, further volatility in EU trade relations may ensue.

Key Figures:

• July 2021: EU trade surplus of €207 billion
• December 2022: Shift to a deficit of -€446 billion
• August 2024: Recovery to a surplus of €151 billion