The biggest export group — crude oil, petroleum products, natural gas, petrochemicals — retraced part of the 50% spike as prices dropped.
By Wolf Richter for WOLF STREET.
The huge US trade deficit improved – or got less horrible, we might say – by 19% in 2023, with exports of goods and services rising to $3.05 trillion, and with imports of goods and services falling sharply to $3.83 trillion, producing the least horrible trade deficit since 2020, of $773 billion. The US trade deficit with China and Hong Kong was cut by 29%, as other countries such as Vietnam and Mexico picked up some of the trade. As we discussed in detail the other day, it’s a good thing that trade finally improves, and it was a major contributor to the surprisingly strong GDP in 2023.
Despite the horrible trade deficit, the US still exported over $2 trillion of goods alone – not counting services – amounting to roughly half the GDP of Germany. Those exports added $2 trillion to US GDP in 2023. Those are big numbers. But the US is a huge economy, and it doesn’t export enough, given the size of its economy; and it imports way too much.
The biggest US export products.
Industrial supplies and materials include crude oil, petroleum products, natural gas, and petrochemical products that together amounted to $466 billion in exports in 2023, but that was down by 13% from 2022 when $534 billion of the products were exported, amid the 50% surge that year. These products are the largest line items in the overall category “Industrial supplies and materials.” Some of the spike and retracement are related to the sharp movements in prices.
The US has become the largest producer of crude oil, petroleum products, and natural gas in the world, drill baby drill, and it has a large petrochemical industry, and exports large amounts of those products.
Industrial supplies and materials
2023
2022
% change
Total, in billion $
728.0
830.8
-12.4%
Top products:
Crude oil
116.9
119.1
-1.9%
Other petroleum products
77.3
91.2
-15.2%
Fuel oil
47.9
58.5
-18.1%
Plastic materials
44.8
50.2
-10.8%
Natural gas
42.0
63.1
-33.5%
Other chemicals
39.5
42.0
-6.0%
Organic chemicals
34.6
39.8
-13.1%
Other industrial supplies
32.9
32.6
1.1%
Natural gas liquids
30.9
38.0
-18.7%
Nonmonetary gold
29.6
40.1
-26.3%
Finished metal shapes
25.8
25.4
1.6%
Newsprint
12.6
14.7
-14.2%
Precious metals, other
12.3
18.8
-34.5%
Iron and steel mill products
12.2
12.0
1.5%
Coal and fuels, other
11.9
11.8
1.4%
Inorganic chemicals
11.9
13.3
-10.3%
Fertilizers, pesticides, and insecticides
11.1
15.9
-30.2%
Metallurgical grade coal
11.0
13.6
-19.2%
Copper
10.0
9.7
3.6%
“Capital goods except automotive” was the #1 export category until the export surge of crude oil, petroleum products, natural gas, and petrochemical products took over.
Capital goods, except automotive
2023
2022
% change
Total, in billion $
601.2
572.7
5.0%
Top products:
Other industrial machinery
68.8
73.9
-6.8%
Semiconductors
57.1
66.5
-14.1%
Civilian aircraft engines
53.8
44.9
19.9%
Electric apparatus
53.2
49.2
8.1%
Medical equipment
46.4
42.8
8.3%
Telecommunications equipment
39.1
34.6
13.0%
Civilian aircraft
35.9
29.2
23.0%
Industrial engines
29.6
26.8
10.8%
Computer accessories
29.1
31.5
-7.7%
Measuring, testing, control instruments
28.8
27.6
4.5%
Civilian aircraft parts
23.8
20.3
17.0%
Computers
19.7
18.4
7.1%
Generators, accessories
15.1
14.0
8.5%
Materials handling equipment
14.4
13.2
8.8%
Laboratory testing instruments
14.1
13.9
1.7%
Excavating machinery
13.2
12.1
9.0%
Agricultural machinery, equipment
11.0
10.0
9.7%
Photo, service industry machinery
10.9
10.5
4.1%
Metalworking machine tools
7.5
6.9
9.1%
“Consumer goods” exports are dominated by pharmaceutical preparations, and those exports have soared by 70% since 2019.
Consumer goods
2023
2022
% change
Total, in billion $
260.4
245.7
6.0%
Top products:
Pharmaceutical preparations
102.0
89.3
14.2%
Cell phones and other household goods
33.2
31.8
4.5%
Gem diamonds
20.7
20.6
0.6%
Toiletries and cosmetics
15.0
14.4
4.6%
Jewelry
14.4
11.8
21.8%
Artwork and other collectibles
11.3
11.1
2.2%
Toys, games, and sporting goods
10.9
12.4
-11.9%
Textile apparel and household goods
8.2
8.4
-2.3%
“Automotive vehicles, parts, and engines” exports are dwarfed by imports of products in that category.
Automotive vehicles, parts, and engines
2023
2022
% change
Total, in billion $
179.0
159.7
12.1%
Top products:
Other automotive parts and accessories
62.8
54.7
14.9%
Passenger cars
61.6
57.2
7.7%
Trucks, buses, and special purpose vehicles
29.8
24.4
22.2%
Engines and engine parts
21.3
20.1
6.0%
“Foods, feeds, and beverages” exports vary widely from year to year, with some commodities jumping and others dropping. The year 2023 was complicated by low water on the Mississippi that restricted barge grain movements, particularly corn.
Foods, feeds, and beverages
2023
2022
% change
Total, in billion $
162.5
179.9
-9.7%
Top products:
Soybeans
29.5
35.4
-16.7%
Meat, poultry, etc.
24.8
26.5
-6.5%
Other foods
17.5
17.8
-1.4%
Corn
14.3
19.8
-27.5%
Animal feeds, n.e.c.
13.1
12.4
5.4%
Nuts
9.7
9.7
0.2%
Fruits, frozen juices
8.7
8.6
0.8%
Vegetables
7.9
7.5
5.9%
Bakery products
7.7
7.1
8.0%
Dairy products and eggs
6.6
8.0
-16.8%
Wheat
6.3
8.5
-26.3%
“Other goods” is everything else that gets exported that is not part of the five big categories.
Other goods
2023
2022
% change
Total, in billion $
88.4
76.4
15.8%
Exports minus imports: Step in the right direction.
Exports of goods (blue) fell by $39 billion to $2.05 trillion, as we discussed here. Imports of goods (purple) improved by $161 billion to $3.11 trillion. So the trade deficit in goods (red line) improved by $121 billion, to $1.06 trillion, the first major improvement since 2009.
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