The euro area reported a €1.9 billion trade deficit in goods with the rest of the world in January 2026, compared to a €1.4 billion deficit in the corresponding month a year earlier.
This is also a sharp reversal from the €11.2 billion surplus recorded in December 2025, Eurostat‘s data showed.
In January, exports from the euro area to the rest of the world fell by 7.6% year-on-year to €215.3 billion, while imports declined by 7.3% to €217.2 billion, Eurostat noted.
Sector by sector
The downturn was driven largely by the machinery and vehicles sector, where the trade balance dropped from €13.2 billion in December 2025 to just €1.6 billion in January 2026. Similarly, the chemicals sector saw its surplus fall from €24.6 billion a year earlier to €16.7 billion.
In contrast, the energy sector showed improvement, with its deficit narrowing from €26.2 billion in January 2025 to €19.2 billion a year later.
EU trade picture
Across the wider European Union, the trade picture followed a similar pattern. The EU recorded a €5.9 billion deficit in January 2026, slightly higher than the €5.4 billion deficit a year earlier. Exports dropped by 10% to €189.2 billion, while imports fell by 9.5% to €195.1 billion.
Trade with key partners also shifted. The EU maintained a surplus with the United States – although this declined sharply – and the United Kingdom, but continued to run a large deficit with China.
Compared to January 2025, the EU deficit increased slightly, by €0.5 billion, based on fluctuations across several sectors.
‘The chemicals and related products sector experienced a significant decrease, with the surplus moving from €23.0 billion in January 2025 to €15.4 billion in January 2026,’ Eurostat noted. ‘Additionally, the machinery and vehicles sector saw a notable decrease over the year, with the surplus dropping from €8.4 billion in January 2025 to €1.7 billion in January 2026. Conversely, the energy sector showed improvement over the year, reducing its deficit from €-29.3 billion in January 2025 to €-21.5 billion in January 2026.’ Read more here.
