📈 Global Trade Dominance: U.S. vs. EU in 2000 & 2024

From 2000 to 2024, total goods trade (exports + imports) grew from $2.04 trillion to $5.38 trillion for the U.S. (4.1% CAGR) and from $1.77 trillion to $5.43 trillion for the European Union (4.8% CAGR). By 2024, U.S. and EU trade volumes were nearly identical, but their trade balances showed key differences:

·     Exports: The EU exported $2.8 trillion, 34% more than the U.S. at $2.1 trillion.

·     Imports: The U.S. imported $3.3 trillion, 25% more than the EU at $2.6 trillion.

·     Trade Balance: The U.S. had a $1.2 trillion trade deficit, while the EU maintained a $160 billion trade surplus

·     Trade as a Share of GDP: In 2024, goods trade accounted for 18.4% of U.S. GDP versus 28.0% of EU GDP, underscoring the EU’s greater reliance on global trade.

Shifts in Regional Trade Influence: 2020 vs. 2024

In 2020, the EU was the larger trade partner for most countries worldwide, except for:

·     The Americas (excluding Argentina, Brazil, Chile, Uruguay, and Suriname).

·     Asia, including China, Japan, South Korea, Malaysia, the Philippines, Singapore, Taiwan, and Thailand.

·     Africa, specifically Angola, Gabon, and Nigeria.

By 2024, trade shifts included:

·     Chile replacing Bolivia as a country where the EU was the larger trade partner over the U.S.

·     China shifting to Hong Kong, Indonesia, Laos, and Vietnam, where trade with the EU overtook the U.S.

·     Angola, Gabon, and Nigeria shifted to the EU

Despite these changes, the U.S. remained the largest trade partner for Japan, South Korea, Malaysia, the Philippines, Singapore, Taiwan, and Thailand, as these countries continued to rely on the U.S. as their primary export market.