U.S. Trade by Industry Sectors and Selected Trading Partners

Changes in 2021 from 2020:

• U.S. total exports: Increased by $329.0 billion (23.1 percent) to $1.8 trillion
• U.S. general imports: Increased by $496.9 billion (21.3 percent) to $2.8 trillion

U.S. Exports

U.S. total exports increased by $329.0 billion (23.1 percent) to $1.8 trillion in 2021, following consecutive years of declining exports in 2020 and 2019 (table US.1). ^[1] The growth in 2021 exports was driven largely by both supply and demand factors associated with the improving U.S. and global economies, following the outbreak of the COVID-19 pandemic and corresponding slowdown in 2020. Additionally, rising commodity prices also contributed to higher trade values in 2021.^[2]

The value of U.S. exports increased for all merchandise sectors included in this report.^[3] The merchandise sectors with the largest increases in absolute value were energy-related products, up $91.2 billion (58.1 percent) to $247.5 billion; chemicals and related products, up $59.9 billion (26.1 percent) to $289.1 billion; and minerals and metals, up $41.4 billion (32.2 percent) to $169.7 billion (table US.2).

U.S. Imports

The value of U.S. general imports increased by $496.9 billion (21.3 percent) to $2.8 trillion in 2021, whereas the previous two years saw import declines. Like U.S. exports, the 2021 rise in U.S. imports was driven by a return to growth in U.S. and global economies following the outbreak of the COVID-19 pandemic and initial slowdown in 2020. Elevated commodity prices also influenced trade values in 2021.^[4]

The value of U.S. imports rose for all U.S. manufacturing sectors included in this report. Energy-related products had both the largest absolute increase by value and largest percentage increase, rising by $93.3 billion (74.1 percent) to $219.2 billion. Electronic products had the second-largest absolute increase by value, rising $88.3 billion (18.3 percent) to $572.0 billion, followed by minerals and metals, which rose by $57.6 billion (28.3 percent) to $261.5 billion (table US.4).

Trade with Major Partners

Canada returned to its position as the top U.S. trading partner in 2021, after dipping below China and Mexico in 2020. China fell to second place and Mexico to third, followed by Japan and South Korea as the fourth- and fifth-largest U.S. trading partners in 2021, respectively.

The two largest destinations for U.S. total exports continued to be the trading partners under the United States–Mexico–Canada Agreement (USMCA). Combined, U.S. exports to Canada and Mexico accounted for nearly one-third of all U.S. merchandise exports in 2021. China continued to be the leading supplier of U.S. imports and was the third-largest destination for U.S exports. Mexico and Canada were the second- and third-largest suppliers of U.S. imports. Japan and South Korea ranked fourth and fifth, respectively, as destinations for U.S. exports; Germany and Japan ranked fourth and fifth, respectively, as suppliers of U.S. imports (tables US.1 and US.3).

The value of U.S. total exports of merchandise goods rose from each of the five largest U.S. export destination markets—Canada, Mexico, China, Japan, and South Korea—from 2020 to 2021. The growth in exports from these countries accounted more than 50 percent of the $329.0 billion net increase in U.S. exports. The largest absolute increase in U.S. exports by value was to Mexico, which rose by $65.0 billion (30.7 percent) to $276.5 billion. Canada remained the largest market for U.S. exports at $307.0 billion, having risen by $51.6 billion (20.2 percent) in 2021.

U.S. exports to Canada rose for all merchandise sectors. The two largest increases by value for U.S. exports to Canada were chemicals and related products (which rose $10.7 billion or 13.6 percent) and minerals and metals (which rose $8.0 billion or 29.6 percent). The growth in U.S. exports to Mexico was driven by a $19.2 billion (80.0 percent) rise in exports of energy-related products. The increase in U.S. exports to China was broad based, but the largest absolute increases by sector were in agricultural goods (up $6.7 billion or 24.8 percent) and energy-related products (up $5.9 billion or 56.4 percent).

The sectors with the largest absolute increases from 2020–21 were energy-related products, followed by chemicals and related products, and minerals and metals. The increase in U.S. energy-related product exports was principally driven by rising commodity prices.^[6] For example, rising prices for U.S. domestic exports of liquified propane gas, natural gas (liquified or pipeline), and crude petroleum drove most of the net increase in U.S. exports of energy-related products. In 2021, U.S. domestic exports of pipeline gas to Mexico increased $7.8 billion (130.4 percent) to $13.9 billion due to higher prices, rising Mexican demand for electricity and heating, and several new cross-border pipelines entering service. Fossil fuel prices increased globally due to strongly recovering demand and limited supply expansions.

U.S. domestic exports of chemicals and related products increased in all but one digest in 2021—gelatin was the exception and decreased by $10 million (9.9 percent). The three largest absolute value increases were: medicinal chemicals, which grew $21.3 billion (36.8 percent); certain organic chemicals, which increased $5.3 billion (30.9 percent); and miscellaneous plastic products, which rose $4.4 billion (18.3 percent). The increased values of chemical and related product exports were attributable to the ongoing COVID-19 pandemic and a broad economic recovery.

U.S. domestic exports of nearly all minerals and metals product digests increased in 2021. The three largest absolute value increases were: precious metals and non-numismatic coins, which rose by $10.1 billion (31.8 percent); steel mill products, which rose by $3.6 billion (44.0 percent); and copper and related products, which rose by $3.1 billion (57.7 percent). The increased values of minerals and metals exports reflect rising commodity prices that resulted from the recovering demand for these products used by downstream industries (e.g., automotive, construction, and energy) in conjunction with production constraints.^[7]

The value of U.S. general imports of merchandise goods rose from each of the five largest U.S. trading partners—China, Mexico, Canada, Germany, and Japan—from 2020 to 2021. The growth in imports from these countries accounted for over 50 percent of the $497.9 billion net increase in U.S. imports. The largest absolute increase in U.S. imports by value was from Canada, which rose by $86.8 billion (32.1 percent) to $357.2 billion. China remained the largest source of U.S. imports at $434.7 billion, having risen by $71.6 billion (16.5 percent) in 2021.

U.S. imports from Canada rose for 9 of the 10 merchandise sectors; the only exception was textiles and apparel. The two largest increases by value for U.S. imports from Canada were in energy-related products (which rose $44.7 billion or 75.2 percent) and minerals and metals (which rose $12.6 billion or 41.5 percent). The growth in U.S. imports from Mexico was largely driven by a $15.3 billion (13.7 percent) rise in imports of transportation equipment, principally motor vehicles and parts. The expansion in U.S. imports from China was broad based, with the largest absolute increases by sector in electronic products (up $22.4 billion or 13.9 percent) and machinery (up $8.6 billion or 17.3 percent).

The rise in U.S. merchandise imports in 2021 was led by energy-related products, electronic products, and minerals and metals. The increase in U.S. energy-related products imports were principally driven by rising commodity prices in petroleum products.^[8] U.S. imports of crude petroleum and petroleum products grew by $56.4 billion (73.5 percent) and $28.7 billion (78.2 percent) in 2021, respectively. U.S. imports of energy-related products were mostly sourced from Canada and Mexico, as well as from three other key suppliers: Russia, Saudi Arabia, and Colombia.^[9]

U.S. imports of electronic products increased in all but one digest in 2021—radio and television broadcasting equipment was the exception and decreased by $199 million (6.2 percent). The digests with the largest absolute value increases were computers, peripherals, and parts, which increased by $22.1 billion (15.6 percent) and telecommunications equipment $16.4 billion (17.3 percent). The rise in demand for certain electronic products was associated with increased remote work and learning necessitated by the pandemic as well as global telecommunications systems upgrades to support the transition to 5G. U.S. imports of electronic products came mostly from major trading partners that are also some of the largest exporters of electronics products—China, Mexico, Taiwan, Vietnam, and Malaysia. Those five countries combined supplied over 68 percent of the total U.S. imports of electronic products in 2021.^[10]

U.S. imports of minerals and materials increased for most digests in 2021—exceptions include precious metals and non-numismatic coins and precious metal ores and concentrates, which decreased $10.0 billion (17.4 percent) and $16 million (72.8 percent), respectively. The minerals and metals digests with the largest absolute value increases were steel mill products, which rose $16.6 billion (99.1 percent); natural and synthetic gemstones, which rose $8.6 billion (63.4 percent); and copper and related products, which rose $7.0 billion (80.0 percent). The growth in U.S. imports of minerals and metals was attributed to rising downstream demand, from the oil and gas, automotive, and construction sectors, and elevated personal spending.^[11] The largest sources of U.S. imports of minerals and metals were Canada, China, Mexico, India, and Germany. Those five countries accounted for 51.5 percent of the total U.S. imports of minerals and metals in 2021.^[12]

U.S. Merchandise Trade Balance

U.S. total exports and U.S. general imports both increased in 2021, primarily due to recovering supply and demand conditions following the initial slowdown due to the COVID-19 pandemic and the resulting global economic downturn in 2020. However, since U.S. imports rose more quickly than U.S. exports, the overall merchandise trade deficit grew by $167.9 billion (18.4 percent) to $1.1 trillion in 2021.^[13]

In 2021, the United States experienced a trade deficit in 9 of the 10 merchandise sectors included in this report. The only exception was energy-related products, which had a surplus of $28.2 billion. The surplus stems from rising natural gas exports. The surplus in energy-products decreased from 2020 due to rising prices for petroleum imports. Across the board, rising global demand and supply constraints led to higher energy prices (table US.5).

For the nine sectors that had a trade deficit, all had a widened deficit compared to the prior year. Electronic products experienced the largest absolute trade deficit increase ($55.8 billion), and forest products had the largest percentage trade deficit increase (92.3 percent).^[14] U.S. imports of electronic products increased by $57.6 billion in 2021.The factors driving the increased deficit were demand for computers to support remote work and learning as well as equipment to support next generation telecommunication systems. The U.S. forest products trade deficit with Canada increased by $8.0 billion; this occurred largely because of higher lumber costs, invasive species, and increased spending in the United States on home improvement materials.^[15]

In 2021, the United States had trade deficits with each of its 10-largest trading partners (table US.6). For 9 of those 10 trading partners, there was an expanding trade deficit—Mexico was the only exception. The trade deficit expanded the most with China, increasing by $45.0 billion (14.5 percent). The U.S. trade deficit with China, at $355.3 billion, remained the largest single-country trade deficit. The largest percent increase in trade deficit was with Canada, which increased by 236.2 percent to $50.2 billion.