The Growth Or Decline Of US Exports Since 2016

The United States trade deficit has been increasing over the years. A trade deficit means when a particular country’s imports are more than its exports. It also means that the country’s purchasing power and economic capacity is increasing.

But the trade deficit is also an indication of dependency and that the country is not producing enough to increase its export and is dependent on foreign goods more than domestic ones.

The trade deficit, in general, is not very healthy especially considering the US import export data. It shows an imbalance between savings and investments. It shows that a country is spending more money than it is making.

What Are The Leading Goods Exports Of The United States?

According to the US export statistics, the major exports of the U.S. are listed below:

Food, beverages and feedCrude oil, fuel and other petroleum productCivilian aircraft and aircraft enginesAuto parts, engines and car tiresIndustrial machinesPassenger carsPharmaceuticals and medical suppliesWhat Are The Leading Service Exports Of The Us?

It will be surprising to hear that the service industry brings in more money to the U.S. The service exports include:

Travel and transportationFinance and insuranceSales from intellectual propertyWhat Are The Leading Imports Of The U.S.?

The U.S. import-export data shows that the U.S. imports surpass its exports a little more with each passing year. Imports lists can be classified as:

Machinery like computers and hardwareElectrical machineryVehicles and automobilesMinerals, fuels and oilMedical pieces of equipment and suppliesPharmaceuticalsPlasticsFurniture, lighting and signsGems and precious metalsOrganic chemicalsUS Trade Statistics In 2016

US import export data reveals that the value of total exports in 2016 was USD 1,450,906 million. The U.S. exported 4563 products to 225 countries. The total imports amounted to USD 2,224,167 million. It imported 4558 products from 222 countries.

US Trade Statistics In 2017

The U.S. export of merchandise saw a 6.6% rise in 2017, with export figures totalling 1.6 trillion dollars. The imports were around USD 2.4 trillion, a 6.9% increase from 2016. The trade deficit increased by 7.5%.

The biggest trade partners of the U.S. were China, Canada, Mexico, Japan and Germany. The U.S. export of services increased by 5.1%, from USD 758.9 billion to USD797.7 billion between 2016-17. The imports also grew by 6.4%, from USD 509.8 billion to USD 542.5 billion.

US Trade Statistics In 2018

The U.S. exports in 2018 were USD 2.500 trillion in merchandise and services, while its imports were USD 3.121 trillion. Thus, the trade deficit that year amounted to USD 621 billion.

US Trade Statistics In 2019

In 2019, the Trump administration’s “America first” agenda led to a fall in the trade deficit for the first time since 2013. Even though the annual economic growth was the slowest in 3 years, the trade deficit fell by 1.7% that year to USD 616.8 billion.

The imports also decreased by 1.7%. The U.S. exports to the world fell by 1.4%, down to USD 1.6 trillion in 2019. Canada purchased around 17.8% of its total exports, becoming its largest exporter that year.

US Trade Statistics In 2020

The year 2020 brought unprecedented troubles in the economic sector across the globe. The outbreak of the pandemic ceased businesses and economic activities in many nations. A complete lockdown was imposed in many countries.

Manufacturing was limited; supply chains were restricted, cross border trade faced severe difficulties, air transport ceased between many nations and all this majorly impacted the economic growth.

The US export statistics showed that the major US exports were mostly industrial and heavy machinery equipment and imports were all necessities. The pandemic curbed the demand for industrial equipment.

Thus, the exports saw a record low. The imports increased, thus leading to a rise in trade deficit again. The U.S. exports in 2020 were USD 208.6 billion, and imports were USD 253.9 billion. As a result, the trade deficit was USD 45.3 billion.

US Trade Statistics In 2021

The development of the vaccination and the nationwide vaccination drive improved the situation quite a bit in 2021. This had an obvious impact on imports and exports. Exports from the United States increased and touched $206.0 billion in May 2021, the highest since December 2019. The recovery effect raised a demand for consumer goods, pharmaceutical merchandise, foods, feeds and beverages.

Overall Analysis Between 2016-2021

From the above US trade data and studies, we conclude that the trade flow and exports rose between 2016-2018, then fell in 2019 and further in 2020 due to economic policies and unexpected pandemic troubles.

Then in 2021, it again improved with the recovery of the covid-19 situation. The deficit has only been rising since 2016, except for a temporary fall in 2019 due to the Trump administration’s ‘America first policy.

What's The Impact Of US Trade Deficit?

The rising trade deficit has raised concerns among the locals. Some economists have raised concerns over job losses and lowering wages of the existing workers due to increasing imports from China. Some economists also believe that if the trend continues, the deficit might move towards unsustainable levels.

There is a contrary belief by some economists who say that a large trade deficit is an indication of a stronger economy. This is because a trade deficit means higher imports, and higher imports represent greater purchasing power. Moreover, higher interest rates mean foreign traders will invest more in the U.S. economy.

 While the conflict continues, there is still hope that a gradual improvement might be seen in trade deficits. And a movement towards trade surplus is expected within a few years, which might boost the U.S. economy and generate positive US trade data.