France recorded a sharp increase in its trade deficit in March, with authorities attributing the surge largely to rising energy prices linked to the ongoing conflict involving Iran and wider instability in the Middle East.
French customs authorities said on Thursday that the country’s trade deficit widened by €1.4 billion to reach €6.9 billion in March 2026.
Imports rose to €59.3 billion during the month, marking an increase of €1.8 billion compared to February.
Energy prices drive import surge
According to customs officials, the spike was mainly driven by soaring energy costs, particularly natural hydrocarbons, amid tensions in the Middle East.
The authorities noted that import energy prices climbed by nearly 50 percent during the period.
They also cited increased shipments of refined petroleum products and electricity as contributing factors.
“Excluding energy, exports are broadly stable,” the authorities stated.
Trade balance with Europe worsens
France’s trade balance with the European Union also deteriorated by about €700 million, particularly in trade with Germany.
The country further recorded an €800 million decline in trade with non-EU European nations, which officials linked largely to increased natural gas supplies from Kazakhstan.
However, the trade balance improved with countries in Asia and Africa.
First annual decline since July 2025
Over the 12-month period from April 2025 to March 2026, France’s cumulative trade deficit worsened by €1.4 billion, reaching €62.3 billion.
Authorities noted that the latest figures represent the first deterioration in the country’s rolling annual trade balance since July 2025.
The development underscores the growing economic impact of global geopolitical tensions on European economies, particularly energy-dependent nations facing volatile oil and gas markets.
Analysts say continued instability in the Middle East could further pressure inflation, trade balances, and industrial costs across Europe in the coming months.
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