President Donald Trump has launched a world-wide trade war. He has applied tariffs against all countries on Earth that have significant economies, except a few like Russia, in an attempt to adjust trade relations, and return manufacturing to America from countries that he alleges are "ripping off America."
Some countries are obviously ripping off America. Those countries have non-tariff barriers that make it virtually impossible for American companies to sell products. Others are long standing trade partners that have trade surpluses with America in some areas, and trade deficits in others. President Trump is concerned about manufacturing in particular, as he wants manufacturing jobs to return to the USA.
Of America's main trading partners, which one is the best, with "best" meaning that this country imports the most stuff from the United States, and therefore more willingly accepts the idea that trade should follow comparative advantage, where the countries should do what they do best, and trade between these countries allows for each to benefits from the other's economic advantages?
Total imports of American goods and services to a country does not tell the tale of who is America's best trading partner. To get a sense of the "best", it is suggested that an analysis of imports of a per capita basis would be better as it would show the level to which the citizens and businesses in a given country are comfortable with importing goods and services from the United States.
America's main trading partners, and their relative imports of American-made goods and services on a per capita basis, are listed below (2024 numbers in $US). Services are included with goods as services are a massive proportion of the American economy, and inclusion of services provides a better picture of the overall trade relationship.
China - $164.6 Billion/1.415 Billion people = $116 per citizen
European Union - $630.43 Billion/450 Million people = $1,401 per citizen
Japan - $85 Billion/123 Million people = $691 per citizen
UK - $78.3 Billion/69.23 Million people = $1,130 per citizen
Australia - $61.6 Billion/27.2 Million people = $2,265 per citizen
South Korea - $87.2 Billion/51.75 Million people = $1,690 per citizen
Mexico - $384.4Billion/130.9 Million people = $2,937 per citizen
Canada - $764.9 Billion/41.29 Million people = $18,525 per citizen
For every dollar in goods and services that China imports from the USA on a per capita basis, Canada imports 159 dollars.
Canada's relatively massive imports of goods and services from the USA are driven by the very close proximity of the two countries. Still, it is what it is - there is simply no question which country is America's best trading partner.
Note - the board of mewetree.blogspot.com drives a car made in America. Of the nine homes in the neighborhood, four have American-made cars in their driveways. How many neighborhoods in China, the EU, Japan or South Korea could say the same thing?
