Why Is 2026 the Best Time for US Companies to Export to Europe?

In 2025, a weaker US dollar, Europe’s resilient economy, and growing cross-border demand have created the ideal moment for American exporters to expand into Europe.

How Does the Dollar Create a Competitive Advantage for US Exporters?

The US dollar’s recent depreciation has given American exporters a major pricing advantage (see this economy and currency analysis and dollar-versus-euro overview).
According to Bloomberg Intelligence, a weaker dollar and the euro’s fiscal support policies have fueled a strong euro–dollar rally in early 2025.

This means that US goods and services are now more competitively priced for European customers, making it easier to enter traditionally high-cost markets.

USD-EUR Trend Snapshot (2024–2025)

Table description: The dollar’s weakening trend in 2025 increases American exporters’ price competitiveness in Europe.

How Do Interest Rate Cuts Create a Longer Window of Opportunity for US Exporters?

In early 2025, the Federal Reserve cut interest rates by 0.25 percentage points (the second reduction this year), signaling a softer monetary stance and a favorable environment for exporters.
According to Bloomberg Economics and Reuters Market Watch, this move reinforces expectations that the U.S. dollar will remain weaker through 2025, sustaining the pricing advantage for American exporters in Europe.

Why Lower US Interest Rates Matter

• Sustained currency advantage: Lower U.S. rates typically reduce the dollar’s value, making U.S. exports cheaper for European buyers.
• Reduced borrowing costs: Easier access to credit helps North American companies finance international expansion more affordably.
• Extended export window: With European Central Bank rates stable, this policy gap keeps the export advantage in place well into 2026.
• Increased investor confidence: Lower rates encourage foreign direct investment and cross-border partnerships.

Interest Rate & Currency Outlook (2025–2026)

• For U.S. and Canadian exporters, this combination of low rates and a weaker dollar represents a rare, prolonged opportunity to expand into Europe under favorable conditions.

Why Is Europe a Stable Market for Long-Term Growth?

Despite global uncertainty, Europe’s economy remains resilient.
The eurozone grew ~0.2% quarter-over-quarter and ~1.3% year-over-year in Q3 2025, outperforming forecasts for France, Spain, and Italy.
The European Central Bank projects steady growth into 2026, supported by consumer spending and industrial recovery.

This stability positions Europe as a reliable long-term export market for North American firms seeking sustainable expansion.

What Evidence Shows US Export Growth to Europe?

US exports to Europe are already rising across key industries such as medical technology, industrial manufacturing, and digital services.
The Netherlands has become a central hub for American companies establishing European headquarters, hosting names like Uber, Databricks, and Discovery, thanks to its favorable tax and logistics environment.

Final Considerations 

• Europe’s economic resilience and the weaker dollar create a rare export opportunity for US firms.
• Early market entry helps secure long-term trade advantages.
• Strategic sectors include manufacturing, med-tech, and digital services.
• EuroDev provides tailored support for HR, compliance, and sales outsourcing in Europe.

How EuroDev Helps North American Companies Expand to Europe

With over 27 years of experience helping 500 + North American companies, EuroDev provides:

• Sales Outsourcing – Build local presence & generate leads
• HR & EOR Services – Hire and manage employees across Europe
• Market Entry Consulting – Research, compliance & localization

Contact our experts to explore your company’s European expansion strategy.

Written by: Mark de Vries, EuroDev CEO.