What makes these countries such successful exporters? They have a comparative advantage in at least one of three areas. Some are best at supplying low-cost goods. That’s China, Canada, and Mexico. Germany provides high-quality items. Japan’s strategy is to focus on specific products for targeted markets. Each has adopted the most successful strategies that match their strengths. Here’s what the United States imports from these five countries and why they’re the best at producing these goods for the U.S. market:
China: China primarily exports electrical equipment. This includes consumer electronics, appliances, furniture, clothing, and other goods. A lot of China’s exports are manufactured products made for U.S. companies. These companies pay to ship raw materials to China. There the low-cost factory workers process the materials into the final product. Canada: More than 75% of Canada’s exports go to the United States, thanks to the United States-Mexico-Canada Agreement (USMCA). In 2021, Canada became the top total trading partner with the U.S. Canada has abundant supplies of oil, gas, and uranium. Mexico: The other member of USMCA sends even more of its exports, about 78%, to the United States. Mexico’s primary export is vehicles and parts.Japan: Japan’s biggest export to the United States is fuel-efficient and reliable automobiles, like Toyotas and Hondas. It also supplies machinery, medical instruments, aircraft, and parts.Germany: Germany’s biggest export to the United States is industrial machinery, followed by high-end automobiles like BMW, Porsche, and Mercedes-Benz. It also exports pharmaceuticals, machinery, plastics, and precision instruments.
