Updated August 13, 2019
U.S. Trade: Recent Trends and Developments
Background
Table 1. U.S. Trade in 2018
Over the past two years, Congress has demonstrated
significant interest in U.S. and international trade trends as
U.S.$
% Change
part of its efforts to examine U.S. trade policy and key U.S.

(billions)
from 2017*
trading relationships. In particular, demand for comparative
analysis of bilateral trade flows and balances has
Total Exports
2,501.3
6.3
heightened as the Trump Administration takes actions with
Exports of Goods
1,674.3
7.8
the intention of reducing U.S. bilateral trade deficits,
enforcing U.S. trade laws and agreements, and promoting
Exports of Services
827.0
3.5
what it considers to be “free,” “fair,” and “reciprocal” trade.
Total Imports
3,122.9
7.8
The role of Congress in trade policy stems from a number
of overlapping responsibilities, including its constitutional
Imports of Goods
2,561.7
8.6
authority over regulating commerce with foreign countries
Imports of Services
567.3
4.3
and broad oversight responsibility over the performance of
the economy. The changing dynamics and composition of
Total Balance (Deficit)
-627.7
14.1
U.S. trade are important to Members, because they can
Balance on Goods (Deficit)
-887.3
10.2
affect the overall health of the U.S. economy, the success of
U.S. workers and firms, and the U.S. standard of living.
Balance on Services (Surplus)
259.7
1.8
U.S. Trade in Goods
Source: Bureau of Economic Analysis (June 20, 2019).
Note: * not adjusted for inflation.
U.S. merchandise exports totaled $1.7 trillion in 2018, a
7.8% ($120.7 billion) increase from the 2017 level (Table
U.S. merchandise imports from all top trading partners—
1). The value of U.S. merchandise imports was $2.6 trillion
except Nigeria, Hong Kong, and Israel—increased in 2018.
over the same period, up 8.6% ($202.9 billion) from 2017.
The largest increases in imports were $52.1 billion (11.9%)
U.S. imports increased more than U.S. exports, leading to
from the EU, $34.4 billion (6.8%) from China, and $34.1
an increase of $82.1 billion (10.2%) in the U.S.
billion (10.7%) from Mexico. In percentage terms, the
merchandise trade deficit to $887.3 billion.
largest increases were from Singapore (36.7%), Norway
(34.3%), Saudi Arabia (27.5%), and Russia (22.4%). U.S.
Trade in Goods with Leading Partners
imports from Nigeria and Hong Kong decreased 20.2% and
In 2018, the European Union (EU)—as a single entity—
12.5%, respectively.
was the United States’ top trading partner in terms of two-
U.S. Trade in Services
way (exports plus imports) merchandise trade, followed by
China, Canada, and Mexico. China’s share in U.S.
In 2018, U.S. exports of services increased 3.5% ($28.0
merchandise trade has increased dramatically over the past
billion), from $799.0 billion to $827.0 billion, while U.S.
two decades, from 5.8% in 2000 to 15.6% in 2018. Ranked
services imports grew 4.3% ($23.4 billion), from $543.9
by exports, the EU was the leading market for U.S. exports,
billion to $567.3 billion. The U.S. surplus in services trade
which totaled $320.2 billion (19.1% of all U.S. exports).
increased 1.8% ($4.6 billion) to $259.7 billion.
Canada was the second-largest export market ($300.5
Trade in Services with Leading Partners
billion worth of U.S. exports or 17.9%), followed by
The EU was the United States’ top trading partner in terms
Mexico and China. In terms of imports, China was the
of two-way (exports plus imports) services trade in 2018,
leading source of U.S. imports ($540.4 billion or 21.1% of
while the largest single-country services trading partners
all U.S. imports), followed by the EU ($489.8 billion or
were the UK, Canada, Japan, and China. Since 2000, the
19.1%), Mexico, and Canada. The United States had
share of U.S. services trade with partners like the UK,
merchandise trade deficits with most of its major partners in
Canada, and Japan has decreased, while that of China and
2018, including with China ($419.6 billion), the EU ($169.6
India, for example, has grown dramatically. The EU was
billion), Mexico ($86.6 billion), and Japan ($68.5 billion).
the largest export market for U.S. services and the largest
U.S. merchandise exports to most major trading partners
foreign supplier of U.S. services imports in 2018. It
increased from 2017 to 2018. The largest was a $35.4
accounted for $253.6 billion (30.7%) of total U.S. services
billion (12.4%) increase in U.S. exports to the EU. It was
exports and for $198.6 billion (35.0%) of total U.S. services
followed by a $22.0 billion increase in exports to Mexico
imports. After the EU, the top markets for U.S. services
(up 9.0%) and a $17.4 billion increase to Canada (up 6.1%).
exports were Canada, China, and Japan, while the top
In percentage terms, the largest increases in U.S. exports
sources of U.S. services imports were Canada, Japan, and
were to Venezuela (48.3%), India (30.7%), and Nigeria
India. In 2018, the United States maintained a services trade
(23.3%). U.S. exports to Saudi Arabia, China, and Hong
surplus with every major services trading partner except
Kong decreased 16.7%, 7.3%, and 5.9%, respectively.
India ($4.4 billion deficit).
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U.S. Trade: Recent Trends and Developments
U.S. services exports to most leading trading partners
Table 2. U.S. Trade in Goods and Services in 2018
increased in 2018. Exports declined to South Korea (down
(in bil ions of U.S. dol ars)
$1.6 billion or 6.6%) and Japan (down $790 million or
Total
1.7%). The largest increase in value was $9.3 billion to the

Trade
Exports
Imports
Balance
EU, followed by $5.8 billion to Canada and $2.2 billion to
European Union*
1,262.2
573.8
688.4
-114.6
Hong Kong. In percentage terms, the largest increases in
U.S. services exports were to Hong Kong (20.7%), Canada
UK
262.9
140.8
122.1
18.6
(10.0%), and India (6.6%).
Germany
252.3
92.4
159.8
-67.4
U.S. services imports from all but three of the major trading
France
129.2
57.9
71.3
-13.4
partners increased in 2018. Imports from Brazil, Argentina,
and Venezuela fell 13.9% ($992 million), 10.1% ($290
China
736.7
178.0
558.8
-380.8
million), and 14.6% ($88 million), respectively. The largest
Canada
725.4
364.5
360.9
3.6
increases in imports were from the EU ($6.0 billion),
Canada ($2.7 billion), and Singapore ($1.7 billion). In
Mexico
678.2
299.8
378.4
-78.6
percentage terms, the largest increase in U.S. services
Japan
300.3
121.2
179.1
-58.0
imports in 2018 was from Singapore (up 22.0%), followed
by South Korea (up 13.5%) and Canada (up 8.0%).
South Korea
167.3
79.9
87.3
-7.4
Figure 1. U.S. Trade Balance
India
142.8
58.8
84.0
-25.3
(in bil ions of current U.S. dol ars)
Brazil
103.5
67.6
35.9
31.7
Rest of the World
1,514.0
757.8
756.2
1.6
Source: Bureau of Economic Analysis (June 20, 2019).
Note: * includes trade with al 28 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 value-
added basis and do not attribute any portion of the traded
value of manufactured and agricultural products to services
Source: Bureau of Economic Analysis (June 20, 2019).
inputs. Intermediate services, such as transportation and
U.S. Trade in Goods and Services
distribution, R&D, design and engineering, and business
In 2018, U.S. exports of goods and services totaled $2.5
services, are embedded within a value chain as inputs and
trillion, while imports totaled $3.1 trillion, resulting in an
thus are often not visible in the data.
overall deficit of $627.7 billion, up 14.1% from 2017, but
Issues for Congress
down from the all-time high level registered in 2006
The changes in U.S. trade patterns pose both opportunities
($761.7 billion). The deficit on goods, however, increased
and challenges for the United States. These developments
to an all-time high of $887.3 billion, from $805.2 billion in
have intensified congressional interest in U.S. trade policy
2017 (Figure 1).
and demand for information and analysis of bilateral U.S.
Trade in Goods and Services with Leading Partners
trade flows. In the coming months, Members of Congress
The EU was the United States’ largest market for U.S.
may face issues such as shaping U.S. trade policy to reflect
goods and services exports in 2018, accounting for $573.8
this changing composition of trade, enhancing the
billion (22.9%) of total U.S. exports, as well as the leading
competitive position of U.S. firms and workers, and
source of U.S. imports, which totaled $688.4 billion (22.0%
addressing tensions, trade barriers, and issues raised by the
of total U.S. imports) (Table 2). Canada was the second-
growing role of emerging economies in the global
largest U.S. export market, with $364.5 billion worth of
economy. In addition, questions affecting U.S. trade trends
U.S. exports (14.6% of total U.S. exports), and the fourth-
could arise as the Trump Administration renegotiates trade
largest source of U.S. imports, which totaled $360.9 billion
agreements and pursues new ones. Members might weigh
(11.5%). The share of China in U.S. trade has increased
potential costs and benefits to their constituents—and to the
dramatically over the past few decades. In 2000, it
U.S. economy as a whole—as they debate and potentially
accounted for 2.0% of total U.S. exports and 7.1% of total
ratify these agreements.
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.
Andres B. Schwarzenberg, Analyst in International Trade
and Finance
IF11189
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U.S. Trade: Recent Trends and Developments


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https://crsreports.congress.gov | IF11189 · VERSION 2 · UPDATED

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