Opens in a new tab

Breaking news

EU-U.S. Trade In 2025: Surpluses, Shifting Flows And Strategic Ties

Trade Overview And Robust Growth

In 2025, the European Union exported goods worth €554.0 billion to the United States and imported €354.4 billion, resulting in a trade surplus of €199.6 billion. Exports increased 3.4% year over year, while imports rose 4.8%, reflecting continued strength in transatlantic trade flows.

Fluctuating Quarterly Trends

Trade activity varied across the year. The first quarter recorded strong growth in both exports and imports, supported by higher demand in U.S. markets. The second quarter showed a decline, followed by limited recovery in imports during the third quarter, while exports edged lower. By the fourth quarter, both exports and imports declined, indicating softer momentum toward year-end.

Sectoral Highlights And Product Leadership

According to the Standard International Trade Classification, the five largest product groups accounted for 53.0% of EU exports to the United States. Medicinal and pharmaceutical products led with a 29.0% share, followed by road vehicles (7.5%), general industrial machinery and equipment (5.9%), electrical machinery and parts (5.8%), and power-generating machinery (4.8%).

On the import side, medicinal and pharmaceutical products also ranked first at 17.0%, followed by petroleum and related materials (11.2%), power-generating machinery and equipment (9.4%), natural and manufactured gas (7.9%), and other transport equipment (6.6%).

Foreign Direct Investment And Geopolitical Connectivity

The scale of EU-U.S. trade highlights the strategic importance of the American market for Europe and its broader investment links. Data from the Central Bank of Cyprus show that the United States remained one of Cyprus’ key foreign direct investment partners in 2024, alongside major European economies.

The report notes that while Europe remained Cyprus’ largest FDI partner overall, net FDI stock declined due to a sharper reduction in outward investment, primarily linked to equity instruments and, to a lesser extent, debt instruments.

Special purpose entities continued to influence investment flows, contributing to parallel movements in inward and outward FDI. Despite negative net FDI transactions and income in 2024, inward and outward rates of return improved to 7.8% from 6.7% a year earlier, reinforcing Cyprus’ role as a regional financial services hub.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

The Future Forbes Realty Global Properties
Uol
eCredo
Aretilaw firm

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter