Brussels: In the second quarter of 2026, the EU recorded a trade deficit of pound 21.8 billion, as goods imported from non-EU countries (pound 701.8 billion) exceeded exports (pound 680.0 billion), according to figures released by Eurostat, the statistical office of the European Union. This is the first trade deficit registered since the second quarter of 2023, the last of a series of deficits fuelled by soaring energy costs observed between late 2021 and mid-2023.
According to Emirates News Agency, the deficit in the trade balance was primarily due to an increase in the deficit on energy products (from -pound 71.3 billion in Q1 2026 to -pound 101.1 billion in Q2 2026), raw materials (from -pound 7.9 billion to -pound 9.4 billion) and other manufactured goods (from -pound 8.3 billion to -pound 9.1 billion). Additionally, there was a reduction in the surplus of machinery and vehicles (from pound 24.9 billion in Q1 2026 to pound 23.2 billion) and other goods (from pound 11.6 billion to pound 9.1 billion).
On the other hand, there were surplus increases for chemicals (from pound 47.1 billion to pound 54.0 billion) and food and drinks (from pound 10.7 billion to pound 11.5 billion).
Overall, exports increased by 5.4% (+pound 34.9 billion) and imports by 9.9% (+pound 63.4 billion) compared with the previous quarter.
Exports and imports had been declining since the second quarter of 2025, a trend that halted in the first quarter of 2026. Those declines had been partly attributed to tariff tensions.