Trade

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Overall

• 3 main types of economic flows between countries: products (goods and services), people, capital; Source: International Trade 

• America is world's largest importer of consumer goods vs. China is world's largest exporter of consumer goods; Source: Visual Capitalist

• trade: economic growth engine that creates better jobs, reduces poverty, and increases economic opportunity; trade liberalization increases economic growth by 1.0% - 1.5%; Source: World Bank and Visual Capitalist

• factors involved in global trade: favorable business practices, favorable regulation to business growth/investment, adequate ports/roads/other infrastructure; Source: World Bank

• value of trade: collective agreement where imports promote greater competition, cost savings, innovation, reduced prices, increased spending power that can be used for the rest of the economy, higher standard of living; Source: Visual Capitalist 

  • specialization: increases production efficiencies because each countries' comparative advantages generate a greater surplus than if they produced all of their needs independently (Germany’s automobile expertise in automobiles, America’s tech leadership)

  • exchange: countries can exchange their surplus output (exports) for other countries' output (imports)

American Trade: General

• America's largest trading partners: Canada (16.9% of total trade), Mexico (16.2% of total trade), China (7% of total trade); followed by: Netherlands (4.3%), United Kingdom (3.9%), Japan (3.9%), Germany (3.7%), South Korea (3.2%)Source: Visual Capitalist

• top Middle East bilateral trading partners with America (2024): Source: Statista

  • Israel, United Arab Emirates, and Saudi Arabia;

• $918.4 billion goods and services deficit (2024): driven by increase in the goods deficit and increase in the services surplus; Source: Bureau of Economic Analysis

• the U.S. has 14 free trade agreements (FTAs) in effect with 20 countries (40% of America's goods exports); many of our FTAs are bilateral agreements between two governments; Source: USTR and International Trade Administration 

  • USMCA (United States-Canada-Mexico)

  • CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua), Chile, Colombia, Panama, Peru

  • Australia

  • Bahrain, Israel, Jordan, Morocco, Oman

  • South Korea, Singapore

• United States-Mexico-Canada Agreement (USMCA) replaced the North American Free Trade Agreement (NAFTA) in 2020: Source: USTR and The White House and Department of Labor and Vox 

  • automobiles: 75% of their components have to be manufactured in Mexico, America, or Canada to qualify for zero tariffs

  • disciplines on currency manipulation

  • labor provisions (40 to 45% of automobile parts must be made by workers who earn at least $16 an hour by 2023)

  • extends the terms of copyright to 70 years beyond the life of the author

American Services

• Services Imports: America is world’s largest services importer; top suppliers: United Kingdom, Canada, and Japan; Source: USTR 

• Services exports: America is world’s largest services exporter and our top purchasers: United Kingdom, Canada, Ireland, and China; Source: USTR 

  • top American services exports: travel, financial, consulting, transportation, health, education; Source: Visual Capitalist

American Imports

• 50% of America's annual imports: China, Canada, Mexico; Source: Forbes

  • Automotive Industry: relies heavily on Mexico and Canada for parts

  • Energy: 70% of U.S. crude oil imports come from Mexico and Canada

  • Fruits, Vegetables, Nuts: Mexico provides 60% of fresh vegetables and 50% of all fruit and nuts

• America's most common imports: petroleum, vehicles, medicine; Source: Visual Capitalist 

  • petroleum: America's most common import (72% of imported petroleum was crude oil): majority imported from Canada, 11% from OPEC countries, 8% from Russia; Source: Visual Capitalist 

• electronic products (20.2%), transportation equipment (15.1%), and chemicals (13.5%): largest share of America's imports; Source: Visual Capitalist

• America is world’s largest importer of many product categories: cars, electronics, industrial machinery, and pharmaceuticals; Source: Visual Capitalist 

• America’s main import partners: Mexico, China, Canada, Germany, Japan, South Korea, Vietnam, and Taiwan; Source: Statista 

• the European Union bloc: America's largest source of imports (1/5 of all U.S. imports); Source: Visual Capitalist

• top Imports by America's major country partners; Source: Statista

  • China: broadcasting equipment, computers, office machine parts

  • Canada: crude petroleum, cars, petroleum gas

  • Mexico: computers, cars, motor vehicle parts

American Exports

• top exports by America's major country partners; Source: Visual Capitalist

  • Canada: cars

  • Mexico: refined petroleum

  • China: soybeans

• Texas is America's largest exporter: oil and petroleum products are Texas’ biggest export commodity; Source: Statista 

• dumping: when a company exports a product at a price lower than the price it normally charges in its own home product; Source: WTO 

• 5 largest buyers of American goods (50% of all goods exports): Canada, Mexico, China, Japan, and South Korea; Source: Visual Capitalist and World’s Top Exports 

Global trade: Overall

• trade accounts for 60% of global GDP; Source: Visual Capitalist 

• world merchandise trade volume projected to grow 0.9% (2025): America frontloading imports but higher tariffs over time will negatively impact trade; Source: World Trade Organization

• RCEP (Regional Comprehensive Economic Partnership): world's largest trade bloc:15 nations in East Asia (30% of both global GDP and population), followed by: Source: World Economic Forum 

  • USMCA (United States-Mexico-Canada Agreement): 17% of global GDP

  • CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership): 15% of global GDP

  • European Union: 27 members; 14% of global trade

  • AFCFTA (African Continental Free Trade Area): 55 African countries (1.3 billion people)

  • Mercosur: $2.2 trillion GDP

• World Trade Organization (WTO): 164 members; only global international organization dealing with trade rules between nations; ensures goods/services/intellectual property flows smoothly, predictably, and freely to drive economic growth and development; Source: WTO and WTO and WTO 

Global Imports

• world’s largest importers (2023): the U.S. (13.1% of total), China (10.6% of total), and Germany (6.0% of total); Source: Visual Capitalist 

Global Exports

• world’s largest exporters (2023): Source: Visual Capitalist  

  • China (14.2% global share)

  • U.S. (8.5% global share)

  • Germany (7.1% global share)

• exports: 25% of total global production; Source: Visual Capitalist 

• oil: powerful influence on exports since petroleum is the top export across over 50 nations, and along with many other resource-driven materials makes up a sizable share of the global export market; Source: Visual Capitalist