The United States has a gross domestic product of $17,968.2 billion. The fact that the United States is the largest economy in the world generally makes it the favourite trade destination of businesses worldwide. Hence, it is the largest trader and the most sought-after destination and source of foreign direct investment.
As per the US trade data, the United States market has greatly expanded in the recent past. This has led to the further integration of its markets and production with emerging economies of the world.
If we look at the US trade data by country for the year 2019, then we know that its largest trading partners were Canada, Mexico, China, Japan, and the United Kingdom. However, the European Union was also a major trading partner in terms of the bloc.
United States Trade Scenario
The US trade data reveals multi-dimensional insights associated with United States global trade. However, before moving on to the country-wise statistics, we will discuss the macroeconomic attributes of the country’s trade.
The United States accounted for 13.84% of the world imports, making it the largest importer in the world. Its imports aren’t limited to a particular product segment, but it buys goods from different categories. Those categories include automobile, pharmacy, textile, foods and beverages, computer and components, and petroleum.
As per the US import export data, the United States exports comprised over 9.13% of world exports. There’s no denying that the United States is a global manufacturing hub of various goods, and several countries worldwide import those products regularly.
Some of the major imports from the United States are heavy machines and tools, electronic devices, computer and mobile phones, defence equipment, and crude oil.
Import Statistics Of The United States
The country’s total imports amounted to $22,49,661 (US $ million), and the number of trading partners was 222 for the year 2019. Among which the top five import partners were:
The Asian giant emerged as the largest import partner of the United States and held a major chunk in imports, i.e., 21% that amounted to $4,81,728 (US $ million).
Mexico emerged as the second-largest importer and held an import share of 13%, amounting to $2,96,858 (US $ million).
Canada took third place with a share similar to Mexico, and total imports amounted to $2,83,309 (US $ million).
The regular trade partner with the United States took fourth place with an import share of 6%, amounting to $1,35,273 (US $ million).
Finally, Germany stood fourth on the list of mega importers to the United States and had an import share of 5%, amounting to $1,16,396.
Export Statistics Of The United States
While discussing the US trade data by country, we see that the United States is also not behind in exporting goods. The country’s overall exports amounted to $14,53,167 (US $ million), and there were 5,167 different product categories.
Below are the top five export destinations of the United States:
The North American nation saw 18% of exports from the USA, amounting to $2,65,928 (US $ million).
Mexico maintains its position in the export list, too, with a share similar to Canada and total exports worth $2,30,959 (US $ million).
China emerged as the third-largest exporter from the United States with an export share of 8%, amounting to $1,15,775 (US $ million).
Like Mexico, Japan also has its position intact. The exports to Japan amounted to $63,262 (US $ million).
5. United Kingdom
The final name on the list is the UK, with an export share of 4%, amounting to $55,387 (US $ million).
Factors Affecting US International Trade Policies
It is now a well-known fact that the United States imports more than it exports due to the enormous domestic demand and the decent-paying capacity of its population. Hence, there is a general trade deficit in the country with most of its major trading partners.
Many global economists believe that macroeconomic factors like aggregate investment and savings and valuation of the dollar and its role in international markets determine the US trade deficit and further shape its trade policies.
The US import export data, combined with observations of its trade exports, determine the key trade policy components for the country. Apart from the macroeconomic factors, these policy components play a huge role in deciding the US trade scenario with its partner countries.
Therefore, let us take a brief look at the key policy components:
1. The Setting Of Trade Rules, Liberalisation And Enforcement
Mega trade agreements don’t happen without a long period of negotiations. These rules are set over trade and investment conditions, enforcement of commitments, dispute settlement mechanisms, and United States trade laws.
2. Export Promotion And Control
The United States trade administration has trade promotion agreements with major trade partners. They also have working export control regimes with others for various reasons.
3. Customs And Trade Adjustments
It includes the regulations of border trade, national security and trade security factors, the balance of payments and unfair barriers to the United States trade. Trade adjustments also include assistance for dislocated workers and firms.
Further Trade Policies
The United States also offers duty-free access to emerging economies. In addition, it has free trade agreements with numerous countries and trading blocs, which automatically set preferences for its trade. For rules regarding investments, the United States trade administration thoroughly examines the inbound FDI to meet the national security implications, and certain areas have a limit over investments.