France's Trade Deficit Narrows in Q3 2025 Amid Aerospace Export Gains and Sectoral Shifts

France's trade deficit significantly improved in the third quarter of 2025, decreasing to €17.4 billion—a €4.5 billion reduction from the previous quarter—according to customs data published in early November. This improvement was driven largely by a 4.1% increase in exports, reaching €155.7 billion, with the aerospace sector playing a pivotal role in export growth. Imports also rose but at a more modest pace of 0.9%, reaching €173.1 billion.

Despite progress, the energy sector balance remained in deficit at -€11.1 billion, though it showed signs of improvement, returning to levels seen before the Ukraine conflict. Notably, the agricultural balance returned to surplus for the first time since Q2 2024, marking recovery after a challenging year of extreme weather impacted crop yields.

Geographical trade dynamics revealed increased engagement with Asia, where the trade balance improved by €2 billion. Conversely, trade with the Americas worsened by €0.3 billion, affected by reduced aircraft exports to Chile and a declining balance with Brazil. However, exports to the United States demonstrated resilience, growing by 1% in the first eight months of 2025 compared to 2024, outperforming other European exporters.

September’s monthly data showed a slight uptick in the trade deficit to €6.1 billion due to a 200 million euro increase in imports (totaling €57.9 billion) and a 100 million euro drop in exports (totaling €51.8 billion). The energy deficit reached €3.9 billion for the month, reflecting higher foreign energy purchases combined with static exports.

Export strength to the U.S. was largely attributed to a 17% rise in aerospace sales in the first three quarters of 2025, despite the ongoing trade war initiated earlier in the year. French exports excluding aerospace would have declined by 2% in the same period, underscoring the sector's crucial role in offsetting other export weaknesses.

Overall, while France’s trade deficit remains elevated compared to pre-pandemic levels, the third quarter figures reveal notable progress and sectoral shifts that highlight underlying economic adjustments and international trade dynamics in 2025.