Table of Contents
The European Union's trade surplus with the U.S. has reached a record high of €43.6 billion in the first quarter of 2024, reflecting a 27% increase from the same period last year. This is attributed to an increase in exports to the U.S. and a reduction in imports to the EU. The rise in surplus is due to the strength of U.S. domestic demand and the weakness of EU demand. The U.S. and Europe's closer ties are also influencing trade dynamics, with American businesses and consumers turning to Europe amid rising costs of trading with China. On the other hand, the EU is facing challenges in its economic relationship with China, with a trade deficit falling to a three-year low. The EU is expected to follow the U.S. in placing tariffs on Chinese EVs, but is aiming to avoid sparking a trade war with China. Despite these challenges, the trend of "friendshoring" between the U.S. and Europe is expected to continue growing.
