Trade relationships between the United States and the European Union play a significant role in shaping various industries, from pharmaceuticals to manufacturing. As reciprocal tariffs become a topic of discussion, particularly under past and present administrations, understanding the share of EU imports by state provides insight into economic dependencies and potential disruptions.

The U.S. Reliance on EU Imports

On a national level, EU imports account for 18.5% of total U.S. goods imports in 2024. However, this percentage varies widely from state to state, with some states deeply connected to European trade while others have a more diversified set of trade partners.

States with the Highest EU Import Dependence

A few states stand out for their heavy reliance on imports from the EU:

• Puerto Rico (47%) – The highest in the nation, driven largely by pharmaceutical manufacturing.
• Washington, D.C. (45%) – A hub for government contracts and European goods.
• Rhode Island (39%) – A major player in high-value imports.
• New Hampshire (34%) – A surprising contender with a strong trade connection.
• Massachusetts (25%) and Florida (23%) – Both states benefit from European goods, likely in the medical and tech industries.

Key Industries Driving EU Trade

Certain states, including Indiana, North Carolina, and Puerto Rico, have strong ties to Ireland due to pharmaceutical manufacturing. This industry, which produces medications like Ozempic, is particularly susceptible to fluctuations in trade policies. Increased tariffs on EU imports could lead to higher costs for these products, affecting both consumers and businesses.

The States Least Dependent on EU Trade

On the other end of the spectrum, some states have a lower reliance on EU imports, keeping their numbers in the single digits:

• Montana (3%) – One of the least dependent on European goods.
• Idaho (5%) – Minimal reliance, likely due to strong domestic agriculture and trade with Asia.
• Alaska and Hawaii (7-10%) – Geographic isolation makes them less dependent on European imports.

What This Means for Consumers and Businesses

As trade policies evolve, states with higher EU import percentages may feel the impact of tariffs more significantly. Businesses reliant on European suppliers could face rising costs, which may be passed on to consumers. On the flip side, states with lower EU trade exposure may experience less economic disruption but could still be affected indirectly through national trade policies.

The relationship between the U.S. and the EU remains a key factor in shaping domestic markets. With potential shifts in trade agreements, monitoring state-by-state import reliance will be crucial for businesses, policymakers, and consumers alike. Whether in pharmaceuticals, manufacturing, or technology, understanding these economic ties helps anticipate challenges and opportunities in an interconnected global economy.