EU Goods Trade Falls Into Deficit for the First Time Since 2023 as the Gap Reaches 21.8 Billion Euros
The European Union recorded a goods trade deficit of 21.8 billion euros in the second quarter of 2026, its first quarterly deficit since the second quarter of 2023, as imports of 701.8 billion euros outpaced exports of 680.0 billion euros, according to Eurostat.
Energy trade drove the swing into deficit
The deficit followed a 6.7 billion euro surplus in the first quarter, a swing of 28.5 billion euros, on our calculation. Imports rose 9.9 percent, or 63.4 billion euros, from the first quarter, and exports rose 5.4 percent, or 34.9 billion euros, continuing the recovery that began in the first quarter of 2026 after import and export values had been declining since the second quarter of 2025, a decline Eurostat says was partly attributed to tariff tensions. Measured against a year earlier, imports were up 11.7 percent and exports were up 4.5 percent.
| Product group | Q1 2026 balance | Q2 2026 balance |
|---|---|---|
| Energy | -71.3 billion euros | -101.1 billion euros |
| Raw materials | -7.9 billion euros | -9.4 billion euros |
| Other manufactured goods | -8.3 billion euros | -9.1 billion euros |
| Machinery and vehicles | +24.9 billion euros | +23.2 billion euros |
| Chemicals | +47.1 billion euros | +54.0 billion euros |
| Food and drink | +10.7 billion euros | +11.5 billion euros |
| Other goods | +11.6 billion euros | +9.1 billion euros |
Eurostat, “EU imports of goods outpace exports in Q2 2026,” 25 August 2026. The seven balances sum to the 21.8 billion euro deficit exactly, on our check.
Energy was the single largest driver, its deficit widening by 29.8 billion euros, or about 41.8 percent, on our calculation. Because that alone exceeds the entire 21.8 billion euro shortfall, the other six product groups combined still ran a surplus of about 79.3 billion euros in the second quarter, on our calculation, so the headline deficit is fundamentally an energy story rather than a broad weakening of EU trade.
China leads imports, the United States leads exports, and the US relationship is narrowing
China was the EU’s largest supplier in the second quarter, at 153.6 billion euros, or 21.9 percent of all imports, followed by the United States at 98.7 billion euros, or 14.1 percent. On the export side the United States was the largest destination, at 127.7 billion euros, or 18.8 percent of all exports, followed by the United Kingdom at 92.7 billion euros, or 13.6 percent.
| Partner | Share of EU imports | Value | Change vs Q2 2025 |
|---|---|---|---|
| China | 21.9% | 153.6 billion euros | +7.9% |
| United States | 14.1% | 98.7 billion euros | +11.5% |
| United Kingdom | 6.2% | 43.4 billion euros | +8.8% |
| Switzerland | 5.3% | 36.9 billion euros | +2.1% |
| Türkiye | 3.6% | 25.5 billion euros | -0.6% |
| Partner | Share of EU exports | Value | Change vs Q2 2025 |
|---|---|---|---|
| United States | 18.8% | 127.7 billion euros | -5.6% |
| United Kingdom | 13.6% | 92.7 billion euros | +5.6% |
| Switzerland | 8.9% | 60.5 billion euros | +16.1% |
| China | 7.4% | 50.3 billion euros | +2.8% |
| Türkiye | 4.0% | 27.3 billion euros | -4.9% |
Eurostat, “Top trade in goods partners in Q2 2026: US and China,” 26 August 2026.
Working back from Eurostat’s own percentage changes, the EU’s goods surplus with the United States narrowed from about 46.8 billion euros in the second quarter of 2025 to 29.0 billion euros in the second quarter of 2026, a fall of about 17.8 billion euros, or 38 percent, on our calculation, since exports to the US fell 5.6 percent while imports from the US rose 11.5 percent over the same year.
Why it matters: The headline deficit, the first in three years, is driven almost entirely by energy, since the rest of the EU’s goods trade stayed comfortably in surplus. The partner data add a second, separate story: China’s import share and the EU’s narrowing surplus with the United States show the bloc’s trade position is being shaped by two distinct forces at once, an energy bill exposed to global prices and a shifting balance with its two largest trading partners.
Outlook: The next quarterly release will show whether the energy deficit keeps widening into the autumn and winter heating season, and whether the EU-US goods surplus keeps narrowing or stabilises, a trend worth tracking given how much it has already moved in a single year.
Sources: Eurostat.
