Top Categories, Obstacles, and Opportunities in U.S. Exports

Why Are Business Goods the Most Exported Products?

In 2019, the U.S. exported $2.5 trillion in goods and services. This accounted for 8.5 percent of total economic output in the United States, as measured by GDP (GDP). Exports are an important part of the economy. Tariffs imposed by the U.S. government reduced that number slightly in 2019. America has a lot more export potential. Only 1% of American businesses export.

Important Points to Remember

In 2019, exports accounted for 8.5 percent of GDP in the United States.
Capital goods are the most popular exports from the United States. Aircraft, machines, equipment, and semiconductors are among them.
Soybeans, meat, poultry, and corn are the crops that benefit the most from government farm subsidies.
The United States exports are less than its imports.

Top Exports from the United States

The U.S. exports $1.65 trillion worth of goods, accounting for two-thirds of all exports. The United States, like most countries, exports more goods than services. People can easily compare the value of both domestic and imported goods by looking at them, feeling them, and comparing them. When it comes to services, they are more cautious. They prefer to rely on people they know and trust in their own community. The most successful export category is capital goods. Corporations based in the United States are aware of the needs of other multinational corporations. Six categories account for 65 percent of the $547 billion in capital goods exported:

Boeing produces the majority of commercial aircraft ($132 billion).
Machines for the manufacturing industry ($57 billion)
Intel and Texas Instruments3 dominate semiconductors ($50 billion).
($44 billion) electric apparatus
$36 billion in telecommunications
Medical equipment ($38 billion): Unlike most other U.S. export leaders, medical device companies account for more than 80% of all U.S. exports.

The following category is industrial supplies and equipment. Materials used by manufacturers in the United States are worth $531 billion. The majority of it is made up of oil and oil-based products. The large multinationals are once again in charge of the majority of the trade. They are already familiar with their main suppliers' reputations, leaders, and processes. These are the four categories of oil-based exports:

Chemicals ($81 billion): This industry thrives thanks to the United States patent protection. Chemistry is the subject of one out of every five patients. The majority are oil byproducts.
Fuel oil ($41 billion) is the oil used to make heavier fuels than gasoline.
Exxon-Mobil, Chevron, and Conoco-Phillips are the three largest oil producers in the United States ($122 billion).
Plastic ($38 billion) is a byproduct of the oil industry. More than 900,000 people work in the industry.

Although it is a commodity, the next-largest industrial supplies category is not oil-based. At $19 billion, this is non-monetary gold. At $206 billion, consumer goods account for 12% of U.S. exports. Pharmaceuticals ($61 billion), cell phones ($27 billion), and gem diamonds ($20 billion) account for the majority of this. Consumer spending accounts for nearly 70% of the economy. The domestic market experience of American corporations gives them a competitive advantage in the global market. Automobiles come in second, accounting for 10% ($162 billion) of all goods exported. GM, Ford, and Chrysler were the Big Three American automakers until the 2008 financial crisis. They were forced to become more efficient and globally competitive as a result of the auto bailout. Agricultural products, worth $131 billion, are a strategic export. Government farm subsidies benefit the industry. As a result, they are less expensive than their international competitors. (As previous buyers seek new suppliers, the agricultural products market has been shaken by the U.S. government's trade wars and tariffs in 2019.) Bioengineering and chemical additives are used to improve the most important agricultural exports. Both reduce production costs. They are as follows:

Soybeans ($20 billion) are primarily used for cattle feed and have been genetically modified.
Antibiotic-affected meat and poultry ($20 billion)
Corn ($9 billion) is another genetically modified crop.

At $847 billion, services account for a third of total exports. The services that support the major goods categories are the ones that America exports the most. The qualities that enable American companies to excel in commercial aircraft, for example, also benefit travel companies. It is the largest service export with a value of $306 billion. At $228 billion, computer and other business services come in second. It costs $129 billion to protect intellectual property, royalties, and license fees. $131 billion is exported in banking, insurance, and other financial services. The total value of government contracts, including defense, is $21 billion.

Why Doesn't the United States Export More?

The U.S. imports far more than it exports. Why isn't it able to export more? To begin with, China, India, and other emerging market countries have lower living standards. This allows them to produce consumer goods at a lower cost than American workers. In other words, they are better than American companies at producing some of the things that Americans require. They have a distinct advantage over their competitors. Second, some European and Japanese automakers produce higher-quality vehicles than American automakers. Hondas, Toyotas, and BMWs are popular imports because enough Americans prefer foreign cars. Similarly, some foods are only available in certain countries: French croissants and wines, Mexican tequila, and Greek feta cheese, to name a few. Third, the economy of the United States is reliant on oil. Oil is not only one of America's largest exports, but it is also one of its largest imports. The United States continues to consume more oil than it produces. However, this is changing thanks to shale oil production in Montana and Texas. After a shale oil boom that ended in a bust, the industry has recovered. As a result of the oversupply, oil prices have dropped, putting some small businesses out of business. Why doesn't the U.S. use all of its domestic oil and reduce imports? One reason is geography. It's easier to ship Montana oil to Canadian towns than it is to ship it to Florida, for example. Furthermore, some grades of oil are not suitable for use in the United States. They're sent to countries that can make use of them.