Following a year of political and trade tensions between Europe and the United States, commercial ties between the two sides – the deepest and broadest between any two regions in history – have held remarkably strong. In a new study from the American Chamber of Commerce to the EU (AmCham EU) and the US Chamber of Commerce, authors Daniel Hamilton and Joseph Quinlan value the transatlantic economy at a record $9.8 trillion in 2025, up from $9.5 trillion the previous year. This figure comprises an estimated record $2.3 trillion in goods and services trade between Europe and the United States and $7.5 trillion in combined affiliate sales.
The Transatlantic Economy 2026
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In 2025 – the year the US significantly increased tariffs on most goods imported from Europe – total trade in goods between Europe and the US actually increased to $1.46 trillion, up 12% from $1.3 trillion the previous year. Trade in goods between the EU and the US also hit a new record high of $1.05 trillion. The US trade in goods deficit with the EU fell to $219 billion, down 7% from 2024 ($236 billion).
EU-US services trade also posted gains. The report estimates that in 2025 the US exported $325 billion in services to the EU and imported $256 billion. When services trade is added to the trade balance picture, the overall US trade deficit with the EU amounted to an estimated $150 billion – more than four times smaller than the US trade deficit with the Asia-Pacific region ($653 billion) and 1.4 times smaller than the US trade deficit with its USMCA partners, Canada and Mexico. Combined, EU-US trade in goods and services hit an estimated record of $1.63 trillion in 2025.
Despite trade’s prominence in the news agenda, the report finds that investment remains the real driver of transatlantic commerce. Sales through affiliates remained the primary way US companies served European customers and European companies served US customers. US companies sold four times more to European customers through affiliate sales ($3.9 trillion) than they did through exports. Likewise, European companies sold three times more to US customers through affiliate sales ($3.5 trillion) than they did through exports.
European and American affiliates remain important economic forces in each other’s economies. According to the report, American affiliates in Europe generated $835 billion in economic output in 2024, supporting 4.6 million jobs. Meanwhile, European affiliates generated $900 billion in economic output, supporting 5.3 million jobs.
As some political voices increasingly question the importance and value of transatlantic integration, the report confirms that the two sides remained each other’s largest foreign investors. Europe is the primary destination for US investment (53% of US FDI in 2025; 56% over 2009-2025), while European firms account for 56% of all foreign FDI stock in the United States.
Reflecting on the report’s findings, Malte Lohan, CEO, American Chamber of Commerce to the European Union (AmCham EU), stressed the importance of preserving these commercial ties: ‘The numbers show that this commercial relationship is too important to leave stuck in limbo. The transatlantic economy is an indispensable common platform that European and American companies rely on to compete globally.’
‘American companies make an unparalleled contribution to the EU economy. Their investments support local production, jobs and innovation’, Mr Lohan added. ‘The answer to today’s pressures cannot be for either side to turn inward. The door must remain open to the mutual benefits this partnership delivers’.
The Transatlantic Economy 2026 is an annual study providing the latest insights on jobs, trade and investment between Europe and the United States. The report is supported by AmCham EU and the U.S. Chamber of Commerce and authored by Daniel Hamilton, Senior Fellow at the Foreign Policy Institute of Johns Hopkins University’s Paul H. Nitze School of Advanced International Studies, and Joseph P. Quinlan, Senior Fellow at the Transatlantic Leadership Network. The full study is available for download at: transatlantic.amchameu.eu.
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The transatlantic relationship at 250 years: a shared history and a forged future
On Saturday, 4 July, the US marks 250 years as a nation built on the right to life, liberty and the pursuit of happiness. As Americans at home and abroad celebrate this important milestone, it is an apt moment for Europeans to reflect on their own role in the story of the US. From having shaped the political ideals that are at the heart of modern democracies to becoming a global technological and cultural force, the EU and the US can be proud of all that our shared history has inspired across the world.
This relationship is underpinned by the $9.8 trillion transatlantic economy and the 16 million jobs it supports. However, it was never a given that the ‘Old World’ and the ‘New World’ would forge the largest, most consequential economic relationship on earth. There were periods when wars, economic crises and political shifts kept Europeans and Americans from seeing eye to eye. Yet over time, Europe and the US ultimately found ways of moving forward together, united by aligned interests and shared goals for the future.
Over the centuries, what we achieved together reflects the work not only of political leaders but of ordinary, enterprising citizens, who started businesses and expanded their horizons. They were essential to building the partnership, one transaction and one contract at a time. If we were to rewind to 1776, business owners from Boston and Philadelphia to Berlin and Paris would be familiar with some of the challenges transatlantic business currently faces: shifting policies, supply chain disruptions and uncertainty about what comes next. What might surprise them, however, is the sheer depth and breadth of the partnership in 2026 and its impact on not only Europe and the US but the rest of the world.
The depth of the economy
In the 18th century, crossing the Atlantic took weeks, often making the ocean more of a barrier to trade than a link. ‘Trade’ meant raw and manufactured goods slowly and dangerously sailing on ships between Europe and the nascent US. Merchants could only have dreamed of the $6.4 billion that Europe and the US now trade every single day. With the advent of high-speed transport and the digital economy, every value chain in our economies is shaped by transatlantic commerce. And services have become critical to that. In fact, the EU and the US are the two largest traders of services in the world and are each other’s most important services trading partners.
Important as it is, trade now makes up the smaller part of the $9.8 trillion transatlantic economy: $7.5 trillion comes from selling locally to each other’s markets through our respective foreign subsidiaries, a testament to how deeply integrated the EU-US partnership is. Today, there are 5.3 million employees of European companies in the US and a further 4.6 million employees of US companies in Europe.
The stakes of the partnership
The transatlantic relationship has evolved almost beyond recognition in the last 250 years – giving citizens on both sides of the ocean a myriad reasons to celebrate. It has enabled Europe and the US to grow, innovate and project influence together in a way that would have been impossible alone.
Looking back at the rich shared history of Europe and the US over the past 250 years also provides vital perspective: the undisputed gains for businesses and citizens cannot be taken for granted. The international system is anchored in the transatlantic relationship; the current tensions, rapid technological change and global instability further underscore its vital importance to the world. If businesses and governments grow complacent and fail to maintain the EU-US partnership, the next 250 years could see the relationship lose its ability to protect and nurture the things we hold dear.
This anniversary is the right moment to celebrate America’s role in the world and to recognise how far we’ve come as partners in building our shared destinies. It must also remind us that what the EU and the US have created together is precarious and requires wise and continuous political stewardship from both sides for a prosperous future.
American companies will continue to play their part in bringing the EU and the US together for our shared benefit in a rapidly changing world. On behalf of AmCham EU and our 165 member companies, we congratulate the US on everything it has achieved over the last 250 years, and we join in the celebration of all that we have accomplished together.
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