European Union Records First Trade Deficit Since 2023

The European Union recorded a trade deficit of 21.8 billion euros (25.4 billion dollars) in the second quarter of 2026, marking the bloc's first trade deficit since the second quarter of 2023. Data released by Eurostat shows that goods imports from non-EU countries reached 701.8 billion euros, while exports totaled 680 billion euros for the April-June period.

The deficit was primarily driven by an expanding energy deficit, which rose to 101.1 billion euros from 71.3 billion euros in the previous quarter. Widening deficits in raw materials and manufactured goods also contributed to the shortfall. While surpluses in machinery and vehicles declined, the bloc saw growth in chemical and food and drink surpluses.

On a quarter-on-quarter basis, imports surged by 9.9 percent (63.4 billion euros) and exports increased by 5.4 percent (34.9 billion euros). This growth ends a period of trade decline that began in mid-2025, which was attributed to global tariff tensions.