Goods trade between the European Union and the United States reached a record €875 billion ($1.00 trillion) last year, defying the drag of ongoing tariff disputes.
The headline figure suggests resilience in transatlantic commerce, but a new study by the German Economic Institute (IW) reveals that these aggregate numbers mask significant economic damage, particularly to Germany's auto sector.
The divergence between total trade volume and sectoral health is critical for investors tracking European industrial exposure.
While the overall flow of goods remained robust, the composition of that trade has shifted under pressure from US protectionist policies.
The IW analysis indicates that the record high is not a sign of frictionless trade, but rather a lagging indicator that obscures the immediate pain felt by export-dependent industries.
German automakers, which rely heavily on the US market for premium vehicle sales, have faced mounting headwinds.