US exports and imports in 2015: The Return of the Economic Superpower

The trade with foreign countries amounted to $4.99 trillion for USA in the year 2015. Out of this $2.23 trillion was in exports and in US imports the remaining $2.76 trillion comprising of both services and goods. In terms of exports the country is the third largest exporter after China and then the European Union (EU). In terms of imports it is considered to be the largest importer.

Two thirds of US exports comprise of material goods worth $1.514 trillion and one third of the remaining is contributed by capital goods worth $538 billion. The largest of the sub categories is commercial aircraft which is worth $119 billion. The remaining comprises of telecommunications ($42 billion), medical equipment ($34 billion), electric apparatus ($43 billion), semiconductors ($43 billion), and industrial machines ($54 billion).

Industrial suppliedsand equipments worth $428 billion make up for one third of US exports. One of the biggest sub categories is chemicals worth $86 billion. Petroleum products which are worth $54 billion and plastic worth $34 billion and finally oil worth $38 billion are also part of the list along with non monetary gold worth $21 billion.

 

Impact of Consumer Goods and Services Industry

Consumer goods that are exported comprises of 13% of the goods exported like cell phones, gem diamonds and pharmaceutical products.   10% of all the goods that have been exported are contributed by the automobile sector with its automotive products. In the year 2015 the exports amount tantamount to $152 billion.

9% of the goods worth $128 billion that were exported comprised of foods, feeds and many beverages. Among these also the prominent ones were corn, meat/poultry and soybeans. It has been observed that the food exports have somehow reduced to an extent due to many countries considering standards maintained by US food processing industry.

One third of the exports in US are contributed by services worth $687 billion. The largest single category was travel passenger services alone worth $173 billion.  As big an amount of $128 billion was recorded for license fees and royalties. Others included transportation services and passenger fares. The military and government contracts were worth a value of $22 billion. Financial services and other private services amounted to $122 billion.

It has been observed in the trends of US exports in 2015 that like most other nations more goods are exported than services. The reason behind this is that people of the nation have the innate tendency of relying of local services dealing with people they know and they trust rather than falling back upon foreigners and expecting quality services from them. But with goods the dynamics are somewhat different since people can always verify better with the look and touch of the goods and make a direct comparison between the foreign goods at hand and the indigenous ones. This is the reason why goods have a larger pie of two third of the US exports share.

Even among these goods the category of capital goods has been found to fare well since they are mostly utilized by businesses. These goods are produced by the worldwide multinationals that are operational and the nation has been very adept at exporting the equipment and supplies they need. Out of these commercial aircraft and industrial machines top the chart. 

 

Emerging Small Scale Industries

Among Industrial supplies and components oil exports is the largest sub category determining US economy to a large extent. It is as important as capital goods exporting around $428 billion worth quantity.  Most of the trade is again actually done by the big multinationals that operate with some reputations and are already familiar with processes and procedures of their pivotal suppliers.  Chemicals comprise of $86 billion out of this followed next by fuel oil worth $38 billion. After this we have in the list the petroleum products, and plastic. When argued that why does it not utilize all its domestic oil and curb down its imports?  The answer comes as “Geography”. US oil exports imports reports reveal that it is lot easier to import oil from Montana region of Canada and supply across the border towns and parts of the country than to have it shipped from Florida. Even some of the oil produced by US does not qualify for US consumption and hence they are shipped to other nations that have better use for them.

 

Increase of Trade with China and other Asian Countries

US Exports and Imports in 2015 to China

Countries like India and China which are some of the emerging economies have lower standards of living making it easier for them to produce consumer goods at a far lower rate than US labor can even afford to do.  Similarly nations like Japan and Germany can manufacture better quality automobiles compared to US making the nation import these items and some of the food items are considered better made in countries like Chile and Mexico like wines, croissants, and bananas for which they are favored more by the people of the country.

So it has been seen that most of the imported items in US comprise of goods, almost eating an 80% share of the pie having a value of $2.273 trillion.  A little less than this is petroleum products and oil category worth $180 billion while industrial machinery and equipment was worth $486 in 2015. Capital goods are worth $599 billion which is 25% of the share of imports including items like computers, telecommunications and semiconductor products. Similar percentage is occupied by consumer goods worth $595 billion of which cell phone/ TV related products have the larger pie of imports followed pharmaceuticals and apparels and footwear.

Even automotive vehicle parts are imported by US especially the engines. The foods feeds and beverages category was not very large and occupied a very small share of the pie worth $128 billion.

Lastly the services only made up for 18% of the imports worth $489 billon among which the travel category is the highest category following business services including insurance and banking.

Since the imports in the country are more than its exports the trade deficit was of $532 billion.

The country can reduce its import dependency by working on the qualities of goods. By producing shale oil now in Texas the country is expected to revive its dependency on oil sustainability in the coming years hugely influencing its powerful economy.

 

Sources: Credit Loan , World's Top Exports