7 Main Imports of USA You Should Know About
The United States is one of the largest importers in the world, importing goods worth over $3.3 trillion in 2021. But what are the main imports of USA and where do they come from? In this article, we will explore the top seven categories of goods that the US imports and some of the reasons behind their demand.
1. Electrical machinery and equipment:
This category includes products such as computers, cell phones, broadcasting equipment, semiconductors, and other electronic devices. The US imported $477.1 billion worth of electrical machinery and equipment in 2021, accounting for 14.1% of its total imports. The main sources of these products were China, Mexico, Malaysia, Taiwan, and Vietnam.
2. Machinery including computers:
This category covers products such as industrial machines, engines, pumps, turbines, generators, and medical equipment. The US imported $475.9 billion worth of machinery including computers in 2021, representing 14.1% of its total imports. The main suppliers of these products were China, Mexico, Germany, Japan, and Canada.
3. Vehicles:
This category includes cars, trucks, buses, motorcycles, and parts and accessories. The US imported $329.6 billion worth of vehicles in 2021, making up 9.8% of its total imports. The main origins of these products were Mexico, Canada, Japan, Germany, and South Korea.
4. Mineral fuels including oil:
This category comprises products such as crude oil, petroleum products, natural gas, coal, and electricity. The US imported $322.7 billion worth of mineral fuels including oil in 2021, accounting for 9.6% of its total imports. The main sources of these products were Canada, Mexico, Saudi Arabia, Russia, and Iraq.
5. Pharmaceuticals:
This category includes products such as packaged medications, vaccines, blood products, and medical chemicals. The US imported $165 billion worth of pharmaceuticals in 2021, representing 4.9% of its total imports. The main suppliers of these products were Ireland, Germany, Switzerland, India, and China.
6. Optical, technical, medical apparatus:
This category covers products such as lenses, cameras, optical instruments, measuring devices, surgical instruments, and dental equipment. The US imported $115 billion worth of optical, technical, medical apparatus in 2021, making up 3.4% of its total imports. The main origins of these products were China, Mexico, Germany, Japan, and Ireland.
7. Gems and precious metals:
This category includes products such as diamonds, gold, silver, platinum, jewelry, and coins. The US imported $97 billion worth of gems and precious metals in 2021, accounting for 2.9% of its total imports. The main sources of these products were Switzerland, India, Hong Kong, Canada, and Italy.
Why Does the US Import So Much?
There are many factors that influence the import decisions of the US consumers and businesses.
Some of the main reasons are:
- Lower prices: Many imported goods are cheaper than domestically produced ones due to lower labor costs, economies of scale, or currency exchange rates.
- Higher quality: Some imported goods are perceived to be superior in quality, design, or performance than domestically produced ones due to higher standards, innovation, or reputation.
- Variety: Some imported goods offer more variety, choice, or novelty than domestically produced ones due to different tastes, preferences, or cultures.
- Availability: Some imported goods are more available or accessible than domestically produced ones due to seasonal fluctuations, supply constraints, or geographic limitations.
- Trade agreements: Some imported goods benefit from preferential tariffs, quotas, or regulations due to trade agreements between the US and its trading partners.
What Are the Impacts of Imports on the US Economy?
Imports have both positive and negative impacts on the US economy.
Some of the main impacts are:
- Consumer welfare: Imports can increase consumer welfare by lowering prices, improving quality, expanding variety, and enhancing availability of goods.
- Producer competitiveness: Imports can increase producer competitiveness by providing inputs, technologies, ideas, and markets for their goods.
- Economic growth: Imports can increase economic growth by stimulating domestic demand,
investment, innovation, and productivity. - Trade deficit: Imports can increase the trade deficit by exceeding exports in value terms. This can affect the balance of payments, the exchange rate, and the national debt.
- Job losses: Imports can cause job losses by displacing domestic workers or industries that cannot compete with foreign producers. This can affect income distribution, unemployment, and social welfare.
Main Imports of USA: Trends and Implications
The United States of America is one of the largest importers in the world, importing goods worth $3.387 trillion in 2021. This amount reflects a 15% increase from 2020, despite the impact of the COVID-19 pandemic on global trade. The main categories of imports to the USA are consumer goods, capital goods, industrial supplies and materials, vehicles, and pharmaceuticals. In this article, we will analyze the trends and implications of these imports for the US economy and society.
Consumer Goods: The Largest Category of Imports
Consumer goods are products that are intended for personal or household use, such as clothing, toys, appliances, electronics, and furniture. Consumer goods were the largest category of imports to the USA in 2021, accounting for $776 billion or 23% of the total imports. The main sources of consumer goods imports were China, Mexico, Canada, Vietnam, and Germany.
The demand for consumer goods in the USA reflects the high level of income and consumption of its population, as well as the preferences for variety and quality. However, it also implies a high dependence on foreign production and supply chains, which can pose risks in terms of trade disruptions, price fluctuations, and environmental impacts. Moreover, the large trade deficit in consumer goods indicates a loss of domestic manufacturing jobs and competitiveness in some sectors.
Capital Goods: The Second-Largest Category of Imports
Capital goods are products that are used to produce other goods or services, such as machinery, equipment, computers, and telecommunications devices. Capital goods were the second-largest category of imports to the USA in 2021, amounting to $761 billion or 22% of the total imports. The main suppliers of capital goods imports were China, Mexico, Canada, Japan, and Germany.
The demand for capital goods in the USA reflects the high level of investment and innovation in its economy, as well as the need for advanced technology and infrastructure. However, it also implies a reliance on foreign inputs and expertise, which can affect the national security and technological sovereignty of the country. Furthermore, the trade deficit in capital goods suggests a gap in domestic production capacity and competitiveness in some industries.
Industrial Supplies and Materials: The Third-Largest Category of Imports
Industrial supplies and materials are products that are used as inputs or raw materials for other industries, such as oil, gas, chemicals, metals, and plastics. Industrial supplies and materials were the third-largest category of imports to the USA in 2021, totaling $650 billion or 19% of the total imports. The main origins of industrial supplies and materials imports were Canada, Mexico, China, Russia, and Saudi Arabia.
The demand for industrial supplies and materials in the USA reflects the high level of industrial activity and output in its economy, as well as the need for energy and resources. However, it also implies a vulnerability to external shocks and fluctuations in commodity prices and availability. Moreover, the trade deficit in industrial supplies and materials indicates a dependence on foreign sources and markets for essential inputs.
References:
https://www.census.gov/foreign-trade/Press-Release/2020pr/ft900_2012.pdf
http://www.worldstopexports.com/united-states-top-10-imports/
https://www.investopedia.com/news/what-are-top-us-imports/
https://www.thebalancemoney.com/u-s-imports-and-exports-components-and-statistics-3306270
https://oec.world/en/profile/country/usa/
https://traderiskguaranty.com/trgpeak/what-are-the-top-10-u-s-imports/
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