The United States is the largest economy around the world and one of the most advanced in terms of innovation, investment and diversification. This is why the top 3 United States trading partners are going to have an interest in remaining close to the country.
In this guide, we will share with you which are the largest trading partners of the United States and why they are playing an important role in the U.S. economy. Furthermore, we will analyze the relationship the U.S. has with these trading partners and how this can change in the future.
China, Canada and Mexico are the main trading partners of the United States. All of them have a combined trading with the United States between imports and exports of over $1.85 trillion of U.S. dollars (USD). They also represent 34,2% of all U.S. exports and 41% of U.S. imports.
China
China is the second-largest economy in the world and the most important trading partner for the United States in terms of exports and imports. The country represents 17,8% of U.S. imports and 7.7% of exports. Thus, China is by far the main source of U.S. imports with over $478.8 billion.
Most of the U.S. imports that come from China are related to mechanical parts, electronic devices, machinery and other equipment. This represents 47,7% of U.S. imports from China, meaning the country is playing an important role in terms of supplying technological and industrial companies in the United States.
China knows it is playing a very strategic role in the U.S. economy, and this is something the United States is trying to change. Although things can change according to the president in charge, China concentrates most of the imports of the United States, which could have a negative impact in the future in geopolitical terms.
Perhaps, it could be a good moment for the United States to search new trading partners in South America and continue to extend its power in the region.
In terms of U.S. exports to China, over 41% are related to machinery, electronic devices, fuel and other minerals.
Canada
Canada is the northern neighbour of the United States and it is currently concentrating 11.4% of the U.S. imports and 14.6% of the U.S. exports. Indeed, Canada is the main importer of U.S. goods and services with $320.8 billion. More than Mexico and almost double than China.
This shows how important Canada is for the United States and how companies in the U.S. are constantly trying to attract the Canadian market. Despite having a small population, they have a high GDP per capita compared to other countries, pushing high-tech and high-value exports as well.
31% of U.S. exports to Canada represent machines and transportation-related goods. In terms of imports from Canada, 26.83% are related to machines, minerals and fuels.
At the same time, the USD/CAD trading pair in the forex market tends to follow trading balances between the United States and Canada. This could also be something to take into consideration when handling a wide range of investments. In addition to it, the USD/CAD is also one of the largest trading pairs by volume in the forex market, even more than the USD/CNY, the USD/CHF and the USD/HKD.
Mexico
Mexico is one of the largest countries in Latin America and it is the third most important trading partner for the United States. Both Mexico and the United States depend on a high degree from each other in order to provide prosperity to their communities and citizens.
11.9% of U.S. exports go to Mexico, the second partner after Canada and more than to China. Indeed, U.S. exports to Mexico are 54% larger than those to China. 43.68% of the exports to Mexico are related to mineral products and machines.
Mexico is also the second-largest country in terms of U.S. imports. These imports from the U.S. to Mexico include various machines and also vehicle goods. This represents over 47% of the U.S. exports to the country.
Overall, between imports and exports, Mexico represents $578.5 billion in trading volume. This is certainly among the highest in the world and represents the third-largest partner of the United States. In the future, these commercial relations could continue expanding and growing as the U.S. tries moving away from China.
