Trading Partner Portal: Luxembourg
Overview
Trade Overview
Luxembourg lies in between France and Germany in Western Europe. With a population of 668,606 people and a gross domestic product (GDP) of $85.76 billion, Luxembourg is classified as a high-income country. Luxembourg’s economy is centered on its leading financial sector that accounts for over 35% of its GDP. Luxembourg has one of the highest GDP per capita in the world and is the highest in the Eurozone, which results in a prominent high standard of living. Some of Luxembourg’s main trading partners are Belgium and Germany; however, the United States is its fourth largest importer. World Bank, CIA
U.S. – Luxembourg Trade
In 2024, the U.S. exported $1.11 billion worth of goods and products to Luxembourg. Two-way trade totaled $1.81 billion. Top exports from the U.S. included transportation equipment ($267 million), non-electrical machinery ($246 million), used or secondhand merchandise ($177 million), computer and electronic products ($104) million, and other special classification provisions ($61 million).
In the same year, the U.S. imported $698 million of goods from Luxembourg. Of the total, primary metal manufactures were the most common, with a total of $193 million. This was followed by goods returned ($143 million), fabricated metal products ($96 million), non-electrical machinery ($59 million), and textiles and fabrics ($55 million). U.S. Department of Commerce
Luxembourg – California Trade
California exported $164 million of goods to Luxembourg in 2024. The top export category from California to Luxembourg was non-electrical machinery at $51 million. Other top exports included transportation equipment ($32 million), used or secondhand merchandise ($29 million), computer & electronic products ($15 million), and electrical equipment, appliances, & components ($9 million).
In 2024, California imported approximately $41 million worth of goods. Some of the major imports were goods returned and reimports ($23 million), primary metals manufactures ($7 million), non-electrical machinery ($5 million), plastic and rubber products ($2 million), and nonmetallic minerals ($2 million). U.S. Department of Commerce
FDI – Luxembourg
The United States and Luxembourg have healthy flows of investment across their borders. In 2023, the U.S. had $532.5 billion in foreign direct investment (FDI) in Luxembourg. Additionally, Luxembourg had $246.9 billion of investment in the United States. Luxembourg FDI into the U.S. supported 44,400 jobs and contributed $53.7 billion to research and development, and 303 million in expanding U.S. exports. The top industry sectors for Luxembourg’s FDI were real estate, metals, plastics, software and IT services, communications, and business services. Select USA
In California, the fourteenth largest source of FDI through foreign-owned enterprises (FOEs) is Luxembourg. In 2024, FOEs from Luxembourg in California provided 11,447 jobs through 407 firms amounting to $1.30 billion in wages. The top jobs by sector are retail trade, professional/business services, leisure/hospitality, manufacturing, wholesale trade (World Trade Center Los Angeles FDI Report).
Luxembourg: Finance, Space and the Bridge to Europe
Bay Area Council, October 2023
Trade Agreements
Trade Agreements and Issues
Transatlantic Trade and Investment Partnership (TTIP)
Luxembourg is one of the nations that is currently involved in negotiations for the Transatlantic Trade and Investment Partnership (TTIP) with the rest of the European Union and the United States. The United States and the European Union have a strong bilateral trade relationship totaling $698.7 billion in 2015. A free trade agreement, such as TTIP, desires to strengthen that relationship by eliminating tariffs, aligning compatible regulations to open trade, and furthering trade in the service sector.
Transatlantic Trade and Investment Partnership
USTR Transatlantic Trade and Investment Partnership