In fact, the U.S. is the largest importer in the world, having brought in $3.4 trillion in goods and services from abroad in 2021. At the same time, the U.S. exported $2.2 trillion-worth of manufactured goods around the world.
Why Imports and Exports Matter to You
The volume and nature of imports and exports deeply affects the economy of any country, and the U.S. is no exception. Imports and exports can affect a country’s Gross Domestic Product (GDP), its exchange rate, and its level of inflation and interest rates. This, in turn, can make goods and services more expensive or create jobs and stimulate domestic production. It can also affect interest rates you pay for credit card debt, home loans, and other borrowing.
The Balance of Trade and GDP
The relative value of imports and exports in an economy is expressed in a measure known as the balance of trade. This measure is calculated by taking the total value of imports from the total value of exports. If this number is positive, exports exceed imports, and a country is said to have a trade surplus. In the inverse situation, where a country imports more than it exports, it is said to have a trade deficit. A trade surplus indicates that a country is producing goods, services, or raw materials for consumption abroad. The U.S., in contrast, has long maintained a large trade deficit—it has imported more than it has exported for about half of a century. Economists and trade experts are divided on whether the deficit impacts the economy at large. Those opposing a sustained deficit believe it has cost the country manufacturing jobs, depressed wages and eroded the country’s trade competitiveness.
Exchange Rates, Inflation, and Interest Rates
Large deficits, like the one the U.S. maintains, are generally thought to weaken economies. This is because buying goods and services from abroad means a net outflow of currency from a country—dollars are sent abroad, essentially, in exchange for goods and services. A trade deficit will, in theory, devalue a currency and make imported goods more expensive. However, this will then make exports cheaper, increasing demand from abroad. In this way, as long as imports and exports stay relatively well-balanced, an economy can be held in a fairly stable equilibrium. However, this process can also lead to inflation. If a country relies on imported goods (and particularly basic materials like gasoline and food), and the cost of these increase due to a weaker currency, the average cost of living in that country will increase. Controlling inflation of this type is one of the main tasks of a central bank, and one of the main ways of doing this is to raise interest rates. Rising interest rates encourage people to save rather than spend, and act as a brake on inflation. This is another way imports and exports matter to the average person. You might not be importing semiconductors or exporting grain, but the balance between exports and imports can ultimately affect the price you pay for goods and services and the interest rate you receive on your credit card or mortgage.
US Exports vs. Imports
The trade deficit has been growing for much of the last two years. From January to April 2022, the goods and services deficit increased $107.9 billion, or 41.1%, from the same period in 2021. The goods and services that the U.S. imports and exports vary month to month, depending on domestic needs and trends in the world economy. However, some of the largest categories of imports and exports have stayed fairly stable in recent years.
US Imports
The top imports to the United States are:
Cars: $144 billionComputers: $92.4 billionPackaged Medical Treatments: $84.1 billionBroadcasting Equipment: $82 billionCrude Petroleum: $75.1 billion
The US imports mostly from:
China: $438 billionMexico: $326 billionCanada: $264 billionGermany: $116 billionJapan: $112 billion
US Exports
The top exports from the United States are:
Refined Petroleum: $58.4 billionCrude Petroleum: $52.3 billionCars: $47.6 billionIntegrated Circuits: $44.2 billionPetroleum Gas: $34.7 billion
The U.S. exports mostly to:
Canada: $218 billionMexico: $196 billionChina: $122 billionJapan: $63.1 billionGermany: $59.2 billion
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