Top 10 Imports to USA
1. Oil: $389.3 billion (16.7% of total US imports)
2. Machines, engines, pumps: $311.2 billion (13.4%)
3. Electronic equipment: $303.5 billion (13%)
4. Vehicles: $253.3 billion (10.9%)
5. Medical, technical equipment: $72.1 billion (3.1%)
6. Gems, precious metals, coins: $67 billion (2.9%)
7. Pharmaceuticals: $63.4 billion (2.7%)
8. Organic chemicals: $54.7 billion (2.3%)
9. Furniture, lighting, signs: $51.4 billion (2.2%)
10. Plastics: $46.5 billion (2%)
In 2013, total U.S. trade with foreign countries was $5.02 trillion. This consisted of $2.272 trillion in exports and $2.744 trillion in imports of both goods and services. This makes the U.S. the world's third largest exporter, after the European Union (EU) and China, and the world's second largest importer, after the EU.
America is in the Global Economy. If cutoff, it would most likely collapse pretty quickly.
The markets are correct to worry about a slowdown, because the main reason for the fall in oil prices is simply a lack of demand, possibly supplemented by some geopolitical shenanigans.
Whilst the fall in the price of petrol and diesel is to be welcomed, these low crude oil prices are unlikely to last, and will depend on how much financial pain oil producing nations and energy companies can stand. Beyond 12 months or thereabouts too many energy companies will have, or be in the process of going bust. To delay bankruptcy, many energy companies are already cutting back on investment in newer more expensive sources of oil, especially for US oil shale where rig counts are already falling as US Rig Count Continues To Plunge To 10-Month Lows reveals. If this reduction in supply capacity goes too far it will result in future shortage and higher prices.
These low prices are a mixed blessing so make the most of them while they last.
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