Europe’s Trade Surplus Gets a Lift (15.09.2026)

The Eurozone trade surplus widened to €14.2 billion in July 2026, its highest level since October 2025, as exports grew faster than imports.

The surplus was up from €10.7 billion a year earlier, an improvement of €3.5 billion that points to stronger external demand for European goods. Exports jumped 9% year-on-year to €276 billion, reaching their highest level in more than 16 months. Imports also increased, rising 7.9% to €261.8 billion, but the slower pace allowed the trade balance to expand.

Chemicals Drive the Improvement

Much of the gain came from chemicals and related products, where the surplus increased, while other manufactured goods and food and drink also contributed positively. These gains were strong enough to offset a smaller surplus in machinery and vehicles. Energy provided some additional relief. The Euro Area’s energy trade deficit narrowed to €26.1 billion from €28 billion in July 2025, reducing one of the region’s largest trade imbalances.

China Trade Moves in the Opposite Direction

The geographic breakdown showed a sharp divide between major trading partners. Euro Area exports to the US rose 10.7%, while shipments to the UK increased 3.1% and those to Switzerland climbed 14.2%. Exports to China, however, fell 1.6%. The contrast was even stronger on the import side. Purchases from the US and UK increased, while imports from China plunged 32.3%. July’s figures show that stronger exports are providing support to the Euro Area economy, but the gains are not evenly distributed. Weaker machinery trade and the steep fall in Chinese imports suggest that beneath the nine-month-high surplus, some parts of European trade are still losing momentum.

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