March trade surplus fell sharply as energy imports widened the deficit to €25.3 billion amid Middle East tensions.
The euro area’s trade surplus narrowed to €11.1 billion in March, down from a revised €11.1 billion in February, as a widening energy deficit weighed on the balance. The energy trade gap expanded to €25.3 billion from €19.7 billion in February, the largest monthly contributor to the decline.
Exports dropped 5.5% year-on-year in March, while imports rose 4.4%, pushing the overall surplus down from €34.1 billion in March 2025. The first-quarter surplus totaled €16.6 billion, a steep decline from €55.4 billion in the same period last year.
Higher energy prices, driven by Middle East conflict, are expected to keep pressure on the trade balance in the second quarter, with potential spillover effects on manufacturing costs.