According to the latest US Census Bureau statistics, the value of products imported into America fell 25.9% to US$1.56 trillion for 2009 from $2.1 trillion in 2008.
Total exports from the USA also slipped in 2009, down 17.9% to $1.06 trillion from $1.29 trillion in the prior year.
The good news is that the U.S. cut its trade deficit by $315.3 billion or 38.6% to $500.1 billion in 2008. While America paid out a half a trillion dollars more for imports than payments received for its exports, that figure represents a healthy improvement from the $816.2 billion shortfall just one year earlier.
Below is an analysis of the bestselling imports to and exports from the U.S. during 2009.
Top US Import Sales
Among America’s top 10 imports, 8 product categories had lower revenues in 2009. Crude oil deliveries experienced the highest percentage decline, while the value of new and used passenger car shipments to the U.S. was down by the second-highest percentage.
- Crude oil … US$188.5 billion, down 44.9% from 2008 (12.1% of total US exports)
- Medicinal, dental and pharmaceutical preparations … $81.4 billion, up 3.1% (5.3%)
- Passenger cars … $80.9 billion, down 35.6% (5.2%)
- Other household goods (example: clocks) … $60.3 billion, down 2.1% (3.9%)
- Computer accessories … $53.2 billion, down 11.7% (3.4%)
- Automotive parts and accessories … $47.3 billion, down 27.2% (3%)
- Cotton apparel and household goods … $43.9 billion, down 11.2% (2.8%)
- Computers … $40.8 billion, up 0.2% (2.6%)
- Telecommunications equipment … $37.3 billion, down 16.8% (2.4%)
- Video equipment (example: television receivers, DVDs) … $36.1 billion, down 11.9% (2.3%).
Fastest-Growing American Imports
Out of 142 product categories, only 9 American imports showed any annual gain over revenues in 2008. Though their total value is relatively tiny, the fastest-growing import into the U.S. was passenger and cargo boats. Among billion-dollar imports, gold and collectible coins led the way with percentage increases of more than 40%.
- Waterway vessels (excluding scrap) … US$1.9 million, up 325% from 2008
- Non-monetary gold … $8.8 billion, up 41.7%
- Numismatic coins … $1.8 billion, up 41.3%
- Cocoa beans … $1.2 billion, up 34.2%
- Other military equipment … $2.8 billion, up 24.3%
- Cane and beet sugar … $1.2 billion, up 9.2%
- Military aircraft and parts … $2.1 billion, up 4.3%
- Medicinal, dental and pharmaceutical preparations … $81.4 billion, up 3.1%
- Computers … $40.8 billion, up 0.2% (2.6%)
Top US Export Sales
Civilian aircraft continues to the leading U.S. export shipment to the rest of the world. America’s commercial airplane makers eked out a small improvement in exports sales over 2008. Healthcare preparation exports were up by the highest percentage. The remaining 8 product categories had percentage declines as high as 44.5% for passenger cars and 26% for semiconductors.
- Civilian aircraft including parts … US$74.7 billion, up 1% from 2008 (7.1% of total US exports)
- Medicinal, dental and pharmaceutical preparations … $46.1 billion, up 14.1% (4.4%)
- Semiconductors … $37.5 billion, down 26% (3.5%)
- Other industrial machines … $30.9 billion, down 19.1% (2.9%)
- Automotive parts and accessories … $30 billion, down 24.6% (2.8%)
- Telecommunications equipment … $28.7 billion, down 12.6% (2.7%)
- Passenger cars … $27.5 billion, down 44.5% (2.6%)
- Medicinal equipment … $26.9 billion, down 0.5% (2.5%)
- Electric apparatus … $26.1 billion, down 15.5% (2.5%)
- Plastic materials … $25.5 billion, down 19.3% (2.4%).
Fastest-Growing US Exports
Although its sales were comparatively modest, non-military aircraft represents the top American growth export for percentage gains in 2009. Among the 9 other product categories, 3 involved military exports and 3 others were food supply items.
- Non-military spacecraft … US$48.3 million, up 82% from 2008
- Audio and visual recording media … $696.3 million, up 37.7%
- Aircraft launching gear … $452.4 million, up 14.9%
- Medicinal, dental and pharmaceutical preparations … $46.1 billion, up 14.1%
- Military aircraft engines and turbines … $1.9 billion, up 9.9%
- Military trucks and armored vehicles … $1 billion, up 9.8%
- Artillery, guns, missiles and tanks … $3.1 billion, up 8.5%
- Nuts … $4.2 billion, up 7.4%
- Animal feeds … $6.4 billion, up 7.2%
- Soybeans … $16.9 billion, up 5.7%.
Civilian Aircraft Trade Advantage
During 2009, the U.S. exported $74.7 billion worth of civilian aircraft to the world while paying $30.3 billion for similar products imported from the rest of the world.
In other words, American exporters sold $44.4 billion more in commercial airplane products than importers paid out to overseas aircraft makers.
Clearly, the U.S. has a strong comparative advantage in the international trade of civilian aircraft.
Passenger Cars Trade Disadvantage
On the other hand, the U.S. imported $80.9 billion worth of new and used passenger cars last year. Sales of exported American passenger cars totaled $27.5 billion, for a U.S. trade deficit of $53.4 billion for that product category.
America’s comparative disadvantage in selling passenger cars on global markets is $9 billion greater than its trade advantage in commercial aircraft exports. To make matters worse, U.S. exports of passenger cars decreased at a faster pace than imports during 2009.
Selling more made-in-USA automobiles to other countries remains as a major milestone for the U.S. recovery plan.
Sources:This analysis is based on latest statistics from the US Census Bureau - Foreign Trade Statistics and CIA World Factbook as of the date of article publication.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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