Zhitong Finance learned that US President Donald Trump has abandoned his threat to impose an imminent 50% tariff on EU imports, giving more time for negotiations between Washington and the 27 EU countries.
Data from Eurostat shows that the United States is the EU’s largest export partner in 2024, accounting for 20.6% of the EU’s exports.
Data shows that in 2024, pharmaceuticals are the EU’s largest export product to the United States, followed by automobiles, aircraft and related equipment.
Main goods exported by the EU to the United States in 2024
The three countries with the largest EU exports to the United States are Germany (exports of 161 billion euros, about 182.62 billion US dollars), Ireland (exports of 72 billion euros) and Italy (exports of 65 billion euros).
Here is an overview of the EU’s largest exports to the United States:
Pharmaceuticals
Data from Eurostat shows that the EU exported about 120 billion euros worth of pharmaceutical products and drugs to the United States in 2024.
Although Trump initially excluded pharmaceutical products from the reciprocal tariffs he announced on “Liberation Day”, it is unclear whether the industry will continue to be exempted.
Some of the largest EU pharmaceutical companies include: Novo Nordisk (NVO.US), Bayer (BAYRY.US), Roche (RHHBY.US), Novartis (NVS.US).
Automobiles
Data from consulting firm AlixPartners shows that EU countries export about 750,000 cars to the United States each year.
These cars are worth about 40 billion euros, accounting for 14% of the total output of the EU automotive industry and 24% of the total value, as most of the cars exported to the United States are high-end models.
As a result, data from automotive industry organization ACEA shows that the United States is the second largest market for EU car exports in 2024 by value.
Automakers such as Mercedes-Benz (MBGYY.US), Stellantis (STLA.US) and Volvo (VLVLY.US) have withdrawn their financial guidance for 2025, citing uncertainty caused by US trade policy.
Germany’s Volkswagen AG (VWAGY.US) is heavily affected by the tariffs because its high-end Audi brand does not make cars in the United States, but the company has said it plans to announce factories in the United States this year to produce some of its best-selling models.
Aircraft and aircraft equipment
Airbus is France’s second-largest exporter, and according to Cirium data, the company sells about 12% of its aircraft to the United States, some of which are assembled locally.
CFM International, one of the largest suppliers to Airbus and Boeing and the world’s largest engine manufacturer by volume, is jointly owned by France’s Safran Group and GE Aerospace (GE.US).
Engines, motors and motor vehicle parts
The European Union also exports auto parts and engines to the United States. Companies that may be affected by the tariffs include MTU Aero Engines, which makes military aircraft engines and repairs and maintains commercial engines.
European companies that make auto parts, including engines and motors, include: Steyr Motors, MTU Aero Engines and Deutz.
Alcohol
In 2024, European spirits will be worth 2.9 billion euros of the approximately 9 billion euros of alcoholic beverages supplied by the European Union to the United States, according to the European Spirits Association.
Some of Europe’s largest alcohol producers include Dutch beer maker Heineken (HEINY.US), British spirits maker Diageo (DEO.US), and beer maker Carlsberg.
Cosmetics
In 2024, the European Union exported $10.47 billion worth of perfumes, essential oils, cosmetics and toiletries to the United States, according to the United Nations Commodity Trade Statistics database.
Among them, French companies such as L’Oréal (LRLCY.US) export about 2.5 billion euros of cosmetics to the United States each year.
Luxury goods
The largest groups in the luxury goods industry have about a quarter of their products aimed at American consumers, while smaller brands have different market shares, such as 14% for coat company Moncler and 46% for sandal maker Birkenstock (BIRK.US).
France’s luxury goods industry is the largest in the world, employing more than 600,000 people, according to data from the French Ministry of Economy.
Italy produces most of the world’s high-end leather goods and is highly dependent on international trade.
S&P analysts said in a report that the luxury goods industry is one of the sectors most affected by US tariffs because companies have limited ability to move production to the United States.
