Updated August 13, 2019April 20, 2020
U.S. Trade: Recent Trends and Developments
Background
Over the past twoIn recent years, Congress has demonstrated
significant significant
interest in U.S. and international trade trends as
part of its
efforts to examine U.S. trade policy and key U.S.
trading trading
relationships. In particular, demand for comparative
analysis of bilateral trade flows and balances has
heightened as the Trump Administration takes actions with
the intention of reducing U.S. bilateral trade deficits,
enforcing U.S. trade laws and agreements, and promoting
what it considers to be “free,” “fair,” and “reciprocal” trade.
The role of Congress in trade policy stems from a number
of overlapping responsibilities, including its constitutional
authority over regulating commerce with foreign countries
and broad oversight responsibility over the performance of
the economy. The changing dynamics and composition of
U.S. trade aremay be important to Members, because they can
affect the overall health of the U.S. economy, the success of
U.S. workers and firms, and the U.S. standard of living.
Table 1. U.S. Trade in Goods
U.S. merchandise exports totaled $1.7 trillion in 2018, a
7.8% ($120.7 billion) increase from the 2017 level (Table
1). The value of U.S. merchandise imports was $2.6 trillion
over the same period, up 8.6% ($202.9 billion) from 2017.
U.S. imports increased more than U.S. exports, leading to
an increase of $82.1 billion (10.2%) in the U.S.
merchandise trade deficit to $887.3 billion.
Trade in Goods with Leading Partners
In 2018, the European Union (EU)—as a single entity—
was the United States’ top trading partner in terms of twoway (exports plus imports) merchandise trade, followed by
China, Canada, and Mexico. China’s share in U.S.
merchandise trade has increased dramatically over the past
two decades, from 5.8% in 2000 to 15.6% in 2018. Ranked
by exports, the EU was the leading market for U.S. exports,
which totaled $320.2 billion (19.1% of all U.S. exports).
Canada was the second-largest export market ($300.5
billion worth of U.S. exports or 17.9%), followed by
Mexico and China. In terms of imports, China was the
leading source of U.S. imports ($540.4 billion or 21.1% of
all U.S. imports), followed by the EU ($489.8 billion or
19.1%), Mexico, and Canada. The United States had
merchandise trade deficits with most of its major partners in
2018, including with China ($419.6 billion), the EU ($169.6
billion), Mexico ($86.6 billion), and Japan ($68.5 billion).
U.S. merchandise exports to most major trading partners
increased from 2017 to 2018. The largest was a $35.4
billion (12.4%) increase in U.S. exports to the EU. It was
followed by a $22.0 billion increase in exports to Mexico
(up 9.0%) and a $17.4 billion increase to Canada (up 6.1%).
In percentage terms, the largest increases in U.S. exports
were to Venezuela (48.3%), India (30.7%), and Nigeria
(23.3%). U.S. exports to Saudi Arabia, China, and Hong
Kong decreased 16.7%, 7.3%, and 5.9%, respectively.
Table 1. U.S. Trade in 2018
U.S.$
(billions)
Total Exports
Exports of Goods
Exports of Services
Total Imports
Imports of Goods
Imports of Services
Total Balance (Deficit)
Balance on Goods (Deficit)
Balance on Services (Surplus)
% Change
from 2017*
2,501.3
6.3
1,674.3
7.8
827.0
3.5
3,122.9
7.8
2,561.7
8.6
567.3
4.3
-627.7
14.1
-887.3
10.2
259.7
1.8
Source: Bureau of Economic Analysis (June 20, 2019).
Note: * not adjusted for inflation.
U.S. merchandise imports from all top trading partners—
except Nigeria, Hong Kong, and Israel—increased in 2018.
The largest increases in imports were $52.1 billion (11.9%)
from the EU, $34.4 billion (6.8%) from China, and $34.1
billion (10.7%) from Mexico. In percentage terms, the
largest increases were from Singapore (36.7%), Norway
(34.3%), Saudi Arabia (27.5%), and Russia (22.4%). U.S.
imports from Nigeria and Hong Kong decreased 20.2% and
12.5%, respectively.
U.S. Trade in Services
In 2018, U.S. exports of services increased 3.5% ($28.0
billion), from $799.0 billion to $827.0 billion, while U.S.
services imports grew 4.3% ($23.4 billion), from $543.9
billion to $567.3 billion. The U.S. surplus in services trade
increased 1.8% ($4.6 billion) to $259.7 billion.
Trade in Services with Leading Partners
The EU was the United States’ top trading partner in terms
of two-way (exports plus imports) services trade in 2018,
while the largest single-country services trading partners
were the UK, Canada, Japan, and China. Since 2000, the
share of U.S. services trade with partners like the UK,
Canada, and Japan has decreased, while that of China and
India, for example, has grown dramatically. The EU was
the largest export market for U.S. services and the largest
foreign supplier of U.S. services imports in 2018. It
accounted for $253.6 billion (30.7%) of total U.S. services
exports and for $198.6 billion (35.0%) of total U.S. services
imports. After the EU, the top markets for U.S. services
exports were Canada, China, and Japan, while the top
sources of U.S. services imports were Canada, Japan, and
India. In 2018, the United States maintained a services trade
surplus with every major services trading partner except
India ($4.4 billion deficit).
https://crsreports.congress.gov
U.S. Trade: Recent Trends and Developments
U.S. services exports to most leading trading partners
increased in 2018. Exports declined to South Korea (down
$1.6 billion or 6.6%) and Japan (down $790 million or
1.7%). The largest increase in value was $9.3 billion to the
EU, followed by $5.8 billion to Canada and $2.2 billion to
Hong Kong. In percentage terms, the largest increases in
U.S. services exports were to Hong Kong (20.7%), Canada
(10.0%), and India (6.6%).
U.S. services imports from all but three of the major trading
partners increased in 2018. Imports from Brazil, Argentina,
and Venezuela fell 13.9% ($992 million), 10.1% ($290
million), and 14.6% ($88 million), respectively. The largest
increases in imports were from the EU ($6.0 billion),
Canada ($2.7 billion), and Singapore ($1.7 billion). In
percentage terms, the largest increase in U.S. services
imports in 2018 was from Singapore (up 22.0%), followed
by South Korea (up 13.5%) and Canada (up 8.0%).
Figure 1. U.S. Trade Balance
(in billions of current U.S. dollars)
Table 2. U.S. Trade in Goods and Services in 2018
(in billions of U.S. dollars)
Total
Trade
Exports
Imports
Balance
1,262.2
573.8
688.4
-114.6
UK
262.9
140.8
122.1
18.6
Germany
252.3
92.4
159.8
-67.4
France
129.2
57.9
71.3
-13.4
China
736.7
178.0
558.8
-380.8
Canada
725.4
364.5
360.9
3.6
Mexico
678.2
299.8
378.4
-78.6
Japan
300.3
121.2
179.1
-58.0
South Korea
167.3
79.9
87.3
-7.4
India
142.8
58.8
84.0
-25.3
Brazil
103.5
67.6
35.9
31.7
1,514.0
757.8
756.2
1.6
European Union*
Rest of the World
Source: Bureau of Economic Analysis (June 20, 2019).
Note: * includes trade with all 28 member states combined.
Limitations of Trade Data
Source: Bureau of Economic Analysis (June 20, 2019).
U.S. Trade in Goods and Services
In 2018, U.S. exports of goods and services totaled $2.5
trillion, while imports totaled $3.1 trillion, resulting in an
overall deficit of $627.7 billion, up 14.1% from 2017, but
down from the all-time high level registered in 2006
($761.7 billion). The deficit on goods, however, increased
to an all-time high of $887.3 billion, from $805.2 billion in
2017 (Figure 1).
Trade in Goods and Services with Leading Partners
The EU was the United States’ largest market for U.S.
goods and services exports in 2018, accounting for $573.8
billion (22.9%) of total U.S. exports, as well as the leading
source of U.S. imports, which totaled $688.4 billion (22.0%
of total U.S. imports) (Table 2). Canada was the secondlargest U.S. export market, with $364.5 billion worth of
U.S. exports (14.6% of total U.S. exports), and the fourthlargest source of U.S. imports, which totaled $360.9 billion
(11.5%). The share of China in U.S. trade has increased
dramatically over the past few decades. In 2000, it
accounted for 2.0% of total U.S. exports and 7.1% of total
U.S. imports. Last year, China’s share stood at 7.1% of total
U.S. exports and 17.9% of total U.S. imports.
The growth in global production chains, intrafirm trade, and
trade in intermediate goods means that traditional
accounting methods may distort trade data and not fully
reflect the source of resources used in producing goods and
services. This makes it increasingly difficult to understand
and interpret the implications of trade data trends for the
U.S. economy. For example, conventional data that often
drive policy discussions (and used here) may underestimate
trade in services, as the data are not measured on a valueadded basis and do not attribute any portion of the traded
value of manufactured and agricultural products to services
inputs. Intermediate services, such as transportation and
distribution, R&D, design and engineering, and business
services, are embedded within a value chain as inputs and
thus are often not visible in the data.
Issues for Congress
The 2019
Total Exports
Exports of Goods
Exports of Services
Total Imports
Imports of Goods
Imports of Services
Total Balance (Deficit)
Balance on Goods (Deficit)
Balance on Services (Surplus)
U.S.$
% Change
(billions)
from 2018*
2,498.0
-0.1
1,652.8
-1.3
845.2
2.2
3,114.5
-0.5
2,519.0
-1.7
595.4
5.0
-616.4
-1.8
-866.2
-2.4
249.8
-3.8
U.S. Trade in Goods
Source: Bureau of Economic Analysis (April 20, 2020).
Note: * not adjusted for inflation.
U.S. merchandise exports totaled $1.7 trillion in 2019, a
1.3% ($21.5 billion) decrease from the 2018 level (Table
1). The value of U.S. merchandise imports was $2.5 trillion
over the same period, down 1.7% ($42.6 billion) from
2018. U.S. imports decreased more than U.S. exports,
leading to a decrease of $21.1 billion (2.4%) in the U.S.
merchandise trade deficit to $866.2 billion.
U.S. merchandise exports to most major trading partners
increased from 2018 to 2019. The largest was a $15.4
billion (6.1%) increase in U.S. exports to the EU27. It was
followed by a $3.0 billion increase in exports to the UK (up
4.4%) and a $968.0 million increase to India (up 2.9%).
U.S. exports to China, Mexico, and Canada decreased
11.3%, 3.4%, and 2.4%, respectively.
Top U.S. export categories in 2019 included machinery
($379.1 billion), transportation ($274.9 billion), chemical,
plastics, and leather ($256.3 billion), and minerals ($209.7
billion). U.S. exports of art and antiques, wood products,
and base metals were down 11.0%, 9.8%, and 7.4%
respectively, from the 2018 level. In terms of U.S. imports,
the top import categories were also machinery ($717.5
billion), transportation ($344.3 billion), chemicals, plastics,
and leather ($342.1), and minerals ($208.2 billion). U.S.
imports of minerals decreased 13.2% from 2018.
U.S. merchandise imports from all top trading partners—
except China—increased in 2019. The largest increases in
imports were $25.2 billion (5.9%) from the EU27, $11.9
billion (3.4%) from Mexico, and $8.5 billion (18.6%) from
Taiwan. U.S. imports from China decreased 16.2% ($87.7
billion), leading to a 17.7% ($74.1 billion) decrease in the
U.S.-China merchandise trade deficit.
Trade in Goods with Leading Partners
In 2019, the European Union (EU27)—as a single entity
and excluding the United Kingdom (UK)—was the United
States’ top trading partner in terms of two-way (exports
plus imports) merchandise trade, followed by Mexico,
Canada, and China. Ranked by exports, Canada was the
leading market for U.S. exports, which totaled $293.3
billion (17.7% of all U.S. exports). The EU27 was the
second-largest export market ($268.9 billion worth of U.S.
exports or 16.3%), followed by Mexico and China. In terms
of imports, the EU27 was the leading source of U.S.
imports ($453.6 billion or 18.01% of all U.S. imports),
followed by the China ($452.7 billion or 18.0%), Mexico,
and Canada. The United States had merchandise trade
deficits with most of its major partners in 2019, including
with China ($345.5 billion), the EU27 ($184.6 billion),
Mexico ($107.6 billion), and Japan ($70.2 billion).
U.S. Trade in Services
In 2019, U.S. exports of services increased 2.2% ($18.2
billion), from $827.0 billion to $845.2 billion, while U.S.
services imports grew 5.0% ($28.1 billion), from $567.3
billion to $595.4 billion. The U.S. surplus in services trade
decreased 3.8% ($9.8 billion) to $249.8 billion.
Trade in Services with Leading Partners
The EU27 was the United States’ top trading partner in
terms of two-way (exports plus imports) services trade in
2019, while the largest single-country services trading
partners were the UK, Canada, Japan, and China. Since
2000, the share of U.S. services trade with partners like the
UK, Canada, and Japan has decreased, while that of China
and India, for example, has grown dramatically. The EU27
was the largest export market for U.S. services and the
largest foreign supplier of U.S. services imports in 2019. It
accounted for $190.9 billion (22.6%) of total U.S. services
exports and for $147.5 billion (24.8%) of total U.S. services
imports. After the EU27, the top markets for U.S. services
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U.S. Trade: Recent Trends and Developments
exports were the UK, Canada, China, and Japan, while the
top sources of U.S. services imports were the UK, Canada,
Japan, and India. In 2019, the United States maintained a
services trade surplus with every major services trading
partner except India ($3.9 billion deficit).
Table 2. U.S. Trade in Goods and Services in 2019
(in billions of U.S. dollars)
Total
Trade
Exports
Imports
Balance
1,060.9
459.8
601.1
-141.3
Germany
258.5
96.1
162.4
-66.2
France
136.5
59.6
77.0
-17.4
Canada
721.3
358.0
363.3
-5.3
Mexico
682.5
290.7
391.8
-101.1
China
635.3
163.8
471.4
-307.6
Japan
305.5
124.0
181.5
-57.5
United Kingdom
270.4
144.3
126.1
18.2
U.S. Trade in Goods and Services
South Korea
172.0
81.0
90.9
-9.9
In 2019, U.S. exports of goods and services totaled $2.5
trillion, while imports totaled $3.1 trillion, resulting in an
overall deficit of $616.4 billion, down 1.8% from 2018 and
19.1% from the all-time high level registered in 2006
($761.7 billion). The deficit in goods decreased 2.4% to
$866.2 billion while the surplus in services decreased 3.8%
to $249.8 billion (Figure 1).
India
149.0
61.0
88.1
-27.1
Taiwan
104.7
42.3
62.4
-20.1
1,510.8
773.0
737.8
35.2
U.S. services exports to most leading trading partners
increased in 2019. Exports declined to China, down $474.0
million or 0.8%. The largest increase was $11.4 billion
(6.3%) to the EU27, followed by $3.5 billion (7.7%) to
Japan and $1.2 billion (4.9%) to India.
U.S. services imports from all but one of the major trading
partners increased in 2019. The largest increases in imports
were from the EU27 ($9.6 billion), Canada ($1.7 billion),
the UK ($1.6 billion), and Mexico ($1.6 billion). Imports
from Taiwan fell 2.6% ($217 million).
Figure 1. U.S. Trade Balance
(in billions of current U.S. dollars)
European Union*
Rest of the World
Source: Bureau of Economic Analysis (April 20, 2020).
Note: * includes trade with all 27 member states combined.
Limitations of Trade Data
The growth in global production chains, intrafirm trade, and
trade in intermediate goods means that traditional
accounting methods may distort trade data and not fully
reflect the source of resources used in producing goods and
services. This makes it increasingly difficult to understand
and interpret the implications of trade data trends for the
U.S. economy. For example, conventional data that often
drive policy discussions (and used here) may underestimate
trade in services, as the data are not measured on a valueadded basis and do not attribute any portion of the traded
value of manufactured and agricultural products to services
inputs. Intermediate services, such as transportation and
distribution, research and development, and design and
engineering are embedded within a value chain as inputs
and thus are often not visible in the data.
Issues for Congress
Source: Bureau of Economic Analysis (April 20, 2020).
Trade in Goods and Services with Leading Partners
The EU27 was the United States’ largest market for U.S.
goods and services exports in 2019, accounting for $459.8
billion (18.4%) of total U.S. exports, as well as the leading
source of U.S. imports, which totaled $601.1 billion (19.3%
of total U.S. imports) (Table 2). Canada was the secondlargest U.S. export market, with $358.0 billion worth of
U.S. exports (14.3% of total U.S. exports), and the fourthlargest source of U.S. imports, which totaled $363.3
billion(11.7%). China’s share in U.S. trade has increased
dramatically over the past few decades. In 2000, it
accounted for 2.0% of total U.S. exports and 7.1% of total
U.S. imports. While down from 2018, China’s share in
2019 stood at 6.6% of total U.S. exports and 15.1% of total
U.S. imports.
The changes in U.S. trade patterns pose both opportunities
and challenges for the United States. These developments
have intensified congressional interest in U.S. trade policy
and demand for information and analysis of bilateral U.S.
trade flows. In the coming months, Members of Congress
may face issues such as shaping U.S. trade policy to reflect
this changing composition of trade, enhancing the
competitive position of U.S. firms and workers, and
addressing tensions, trade barriers, and issues raised by the
growing role of emerging economies in the global
economy. In addition, questions affecting U.S. trade trends
could arise asif the Trump Administration renegotiates trade
agreements and pursues new onesnegotiates new
trade agreements. Members might weigh
potential costs and
benefits to their constituents—and to the
U.S. economy as a
whole—as they debate and potentially
ratify these
agreements.
Andres B. Schwarzenberg, Analyst in International Trade
and Finance
IF11189
https://crsreports.congress.gov
U.S. Trade: Recent Trends and Developments
Disclaimer
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