Euro dominates extra-EU trade in primary goods

The Global Currency Tug-of-War: Euro vs. Dollar in Trade

In the complex world of international trade, the currency used for a transaction is often as significant as the goods being traded. Recent data from Eurostat reveals a fascinating divide in how the European Union handles its extra-EU trade, highlighting a strategic split between the euro and the US dollar.

While the euro maintains a strong foothold in several sectors, the US dollar continues to exert a dominant influence, particularly in the energy markets. Understanding these patterns is essential for businesses and investors navigating the volatility of global exchange rates.

The “Petrodollar” Grip: Why the US Dollar Rules Energy

When it comes to petroleum products, the US dollar remains the undisputed heavyweight. The data shows a staggering 86.7% share for the US dollar in petroleum imports in 2025, leaving the euro with a modest 12.9% share. Other EU and non-EU currencies are virtually non-existent in this space, accounting for only 0.2% and 0.1% respectively.

This dominance extends to exports as well. Although the euro’s share rises to 27.5% for petroleum exports, the US dollar still commands 70.1% of the market. This trend underscores the deep-rooted systemic reliance on the dollar for energy pricing and settlement, a phenomenon that remains resilient despite global talks of currency diversification.

The Strategic Impact of Energy Currency

For European importers, this reliance on the dollar means that energy costs are not only subject to the price of oil but also to the fluctuations of the EUR/USD exchange rate. A weakening euro can effectively increase the cost of energy imports, even if the global price of oil remains stable.

Where the Euro Leads: Primary and Manufactured Exports

While the dollar dominates energy, the euro is the primary engine for other sectors of EU external trade. The most striking lead is found in the export of primary goods, where the euro was used in 62.2% of transactions, far ahead of the US dollar at 22.9%.

A similar pattern emerges in manufactured goods. The euro is the preferred currency for these exports, holding a 50.4% share compared to the US dollar’s 32.4%. This suggests that the EU has successfully leveraged its own currency to facilitate the sale of its high-value industrial output to the rest of the world.

The Battle for Manufactured Imports

The most competitive arena is the import of manufactured goods. Here, the margin between the two currencies is razor-thin. In 2025, the US dollar led with a 46.2% share, while the euro followed closely at 43.3%.

This near-parity indicates a balanced dependency. European firms are almost as likely to pay for imported machinery, electronics and chemicals in euros as they are in dollars. This balance provides a slight cushion against extreme volatility in any single currency, though it still leaves the EU exposed to the strengths and weaknesses of the US economy.

For more insights on how trade dynamics affect the economy, explore our global trade analysis or visit the official Eurostat portal for comprehensive datasets.

Frequently Asked Questions

Which currency is most used for EU primary goods exports?

The euro is the most used currency for extra-EU exports of primary goods, accounting for 62.2% of transactions in 2025.

Why is the US dollar so dominant in petroleum products?

The US dollar maintains a dominant share in petroleum imports (86.7%) and exports (70.1%) due to long-standing global financial structures and the widespread use of the dollar in energy pricing.

Is the euro used more than the dollar for manufactured goods?

It depends on the direction of trade. For manufactured exports, the euro leads (50.4% vs 32.4%). For manufactured imports, the US dollar leads slightly (46.2% vs 43.3%).

What share of non-EU currencies is used in these trades?

Non-EU currencies generally hold a small share, ranging from as low as 0.1% in petroleum imports to 15.2% in manufactured goods exports.