Trade Integrates the Global Production System

A Few Core Industries Dominate Foreign Trade in Manufactures

The United States historically ran trade deficits in the latter half of the 20th century and the trend continues. The deficits partially stem from a large import bill. More recently, a widening trade deficit with China has added to the shortfall.

The composition of trade is balanced—we export roughly the same types of goods that we import. At the top of the list are high-value goods, such as electronics, transportation equipment, and machinery. Other categories with strong exports are chemicals, processed petroleum products, and foodstuffs. Some products do not trade heavily, particularly textiles, beverages, tobacco, and nonmetallic mineral products.