US trade deficit had been widening before 2008, because the economy was growing fast and manufacturers were shifting production outside of America. But since 2008, trade deficit has been flat, falling within $45 billion to $55 billion.
About 30% of export is services, of which the highest percentage is travel (30%), and then IPR (20%), financial services (10%), and transportation (10%).
US dollar depreciation helps travel services to grow, while a strong dollar suppresses its growth.
About 30% of US export is services, of which the highest percentage is travel (30%), and then IPR (20%), financial services (10%), and transportation (10%).
About 70% of US exports are goods, of which capital goods take up about 35%, industrial goods 30%, consumption goods 10%, cars 10%, foods and beverage 10%, and others 5%.
US mainly exports to these countries: Canada (18%), Mexico (16%), and China (10%). The others are Japan (5%), UK (4%), and Germany (3%).
US mostly exports machinery and commodities to Canada and Mexico, but when commodity prices fall, capital equipment expenses reduce, and exports will slow.
The US's major trade partners are Canada (18%), Mexico (16%), China (10%), Japan (5%), UK (4%) and Germany (3%).
Main exports to Canada and Mexico are machinery and raw material. US exports to these countries decline when commodity prices drop, because a decline in commodity price will lead to a decrease of profit and a reduction in capital expenses.
About 20% of US imports are services, of which the highest percentage is travel (25%), transportation (20%), insurance (10%), IPR (10%), telecommunication and information (10%), and financial services (5%).
Travel imports are higher because overseas travel is getting more and more popular.
About 80% of imports are goods, including capital goods (25%), consumption goods (25%), industrial goods (20%), cars (15%), foods and beverage (5%), and others (5%).
Most of the imported goods are from China (21%), Mexico (13%), and Canada (12%). Others include Japan (6%), Germany (5%), and South Korea (3%).
Imports from Canada are more volatile than imports from other countries because one of the goods imported from Canada is crude oil and oil price fluctuates.
The US has the highest trade deficit with OPEC and China up until 2008, but after the US began producing shale oil to meet its domestic demand, the US has managed to turn the deficit with OPEC into a surplus.
Trade deficit with China, however, has been widening and reached as much as $337.2 billion in 2017, most of which is electronics. China has become the largest creditor to the US, triggering Trump to start the trade war with China.
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