Recent trade data reveals the European Union remains the dominant source of U.S. imports, contributing over $600 billion worth of goods to the American economy in 2024. However, analysis shows significant variation in how this trade is distributed across different U.S. states and territories.
According to figures from the Census Bureau’s USA Trade database, several regions stand out for their particularly high reliance on EU imports. Notable among these are Indiana, North Carolina, and Puerto Rico, each sourcing more than 40% of their total imports from EU nations. Specifically, Puerto Rico leads with 47.45% of imports originating from the EU, followed by Indiana at 46.21% and North Carolina at 45.19%.
This concentrated trading pattern can be largely attributed to the pharmaceutical manufacturing sector, which has established significant operations in these locations. Ireland, in particular, has emerged as a crucial trading partner, ranking as the top import source for both Indiana and North Carolina – a departure from the typical pattern where Canada or Mexico leads state-level import statistics.
The trade landscape may face significant changes following President Trump’s recent announcement of reciprocal tariffs. This policy aims to match U.S. import duties with those imposed by trading partners on American goods. A key focus of this initiative addresses the disparity in automotive tariffs, where European duties on American vehicles currently exceed U.S. charges on European cars.
While the automotive sector, representing one of the top three EU exports to America alongside pharmaceuticals and crude oil, will certainly feel the impact of these new tariffs through increased prices, the pharmaceutical industry could face even more substantial effects. Critical medical imports from the EU include surgical instruments, diagnostic equipment like CRT machines, vaccines, hearing aids, and artificial joints, as reported by CNBC.
On the lower end of the import spectrum, several states maintain notably smaller trade relationships with the EU. Montana shows the lowest dependency at 2.80% of total imports, while Idaho registers 4.99%, and Alaska records 6.63%. Western states generally demonstrate lower EU import shares, with Washington at 6.65% and California at 7.62%.
The disparity in EU import reliance across states reflects diverse economic structures and industry concentrations throughout the country. While some states have developed strong ties with European markets through specific sectors like pharmaceuticals and
manufacturing, others maintain stronger trade relationships with Asian or North American partners.
Beyond sector-specific tariffs, the administration has also
implemented broader trade measures, including new duties on foreign steel imports. This comprehensive approach to trade policy signals a significant shift in U.S.-EU economic relations, with potential implications for state economies that heavily rely on European imports.
The varying degrees of exposure to EU trade across different states suggests that the impact of these policy changes will not be uniform across the country. States with higher percentages of EU imports, particularly those with significant pharmaceutical or automotive industry presence, may experience more pronounced effects from these trade policy adjustments than those with more diversified import sources or lower overall EU trade exposure.