Europe reclaims top spot in US imports

Five charts to start your day

I’ll admit, this one surprised me. When you think about where America gets its stuff, China probably comes to mind first. It’s been the story for decades: cheap manufacturing, massive factories, container ships crossing the Pacific. Or maybe Mexico, given all the talk about nearshoring and manufacturing moving closer to home. But the data tells a different story, and it’s one that challenges a lot of assumptions about how global trade actually works today.

Europe has quietly become America’s largest import partner. Not through dramatic policy shifts or trade wars, but through steady, diversified trade across high-value sectors. While politicians obsess over tariffs and decoupling from China, the real story is happening across the Atlantic. European goods, from German cars to French pharmaceuticals to Italian machinery, are flowing into American ports at record levels.

What makes this shift fascinating isn’t just the numbers. It’s what they reveal about the kind of economy America is becoming. High-value imports from Europe suggest a different trade relationship than bulk manufacturing from Asia. This is about quality, technology and integration between two advanced economic regions rather than simply chasing the lowest labour costs. The Atlantic economy, it turns out, is alive and well.

CHART 1 • Europe reclaims top spot in US imports

The EU has overtaken other trading partners to become the largest source of US imports, highlighting how transatlantic trade remains a central pillar of the global economy even as supply chains shift elsewhere.

From January to May 2025, the US imported $303 billion worth of goods from the EU, accounting for 20.2% of total imports. Mexico came second at $220 billion (14.6%), followed by Canada at $169 billion and China at $149 billion. Switzerland, Vietnam and Taiwan make up the next tier, each contributing between 4 and 5% of total imports.

This shift reflects both structural changes and geopolitical dynamics. Whilst US-China trade has cooled in recent years, Europe has maintained strong export ties with the US across sectors ranging from machinery and pharmaceuticals to luxury goods and vehicles. The result is a trading relationship that remains both deep and diversified.

Source: Bloomberg

This surprised me. So when the dust settles, the biggest likely beneficiary from this fiasco is likely to be the EU. The irony is breathtaking. Well I have another four charts to share with you today, but you will have to subscribe to see them.