In 2022, the U.S. trade deficit surged to almost $1 trillion, with America importing $948.1 billion more than it exported. This marked a $103 billion increase from the previous year’s deficit. The rise occurred amid efforts by the U.S. and its partners to reshape global supply chains in the aftermath of pandemic disruptions and trade barriers, particularly with China — with whom America has a $382.9 billion trade deficit.
However, the U.S. maintained its position as the world’s second-largest exporter, with exports totaling around $2.1 trillion last year, contributing to 8.4% of global exports. A notable success story was the agricultural sector, with U.S. agriculture exports alone reaching $213 billion.
Amidst a period of dynamic geopolitical shifts, it becomes crucial to keep an eye on the comings and goings of American products — and to stay informed about the country’s primary trading partners. To delve into this, OnDeck delved into the latest 2022 data on product exports by state from the U.S. International Trade Administration, aiming to identify the significant export destinations for products from each U.S. state, following their guide to Every State’s Top Import and Export.
Texas boasts the highest annual export value to Mexico, totaling $144.29 billion, making it the leading U.S. state in exports to any foreign country.
The state of Texas exports Petroleum & Coal Products worth $33.63 billion to Mexico annually, marking the highest value for a single product category from a state to another country.
Michigan holds a significant position in exports, with Canada importing $15.37 billion in Transportation Equipment annually, surpassing any product category from any other U.S. state.
Illinois stands out as a major exporter to Australia, with annual imports totaling $4.56 billion in goods, surpassing those from any other U.S. state.
The Country That Each U.S. State Exports the Highest Value Goods To
Canada is the primary export destination for 34 states, while Mexico holds this status for six states. Looked at the other way around, Texas serves as the primary supplier for 94 countries within the U.S., followed by California (25) and Florida (24). Notably, in 2022, New York State emerged as the primary source of U.S. imports for 13 countries, including Switzerland, Hong Kong, and Israel.
Which U.S. State Exports The Highest Value Goods to Each County?
At the beginning of 2023, Mexico surpassed China to become America’s primary trade partner, with bilateral trade reaching $263 billion between January and April. Texas stands out with the highest-value exports to Mexico among all states, totaling $144.29 billion in 2022. A significant portion, $33.63 billion, comes from Petroleum & Coal Products, marking the highest value product exported from any state to a single country.
The Texas-Mexico trade relationship, fostered by their shared border, proves both advantageous and challenging. This trade supports over seven million jobs in the region and contributes to approximately 80% of Texan auto parts exports. However, border delays had notable economic repercussions, reducing U.S. GDP by an estimated $996.3 million and Texas GDP by around $470.3 million each day in 2022, as per Perryman Group estimates.
Texas holds the top position as the leading U.S. exporter to major global economies, including Canada, China, the U.K., and Germany. In 2022, New York State demonstrated a robust trade relationship with Switzerland, with exports reaching $23.56 billion. A significant portion, over three-quarters of this trade, falls within the category of Primary Metal Manufactures, encompassing upstream metal products such as closures, castings, pipes, tubes, wires, and springs.
Furthermore, New York is a pivotal state for Hong Kong’s imports from the U.S. With Hong Kong, the U.S. maintains a substantial trade surplus, and New York City hosts one of its three Economic and Trade Offices.
The Highest Value Export Between Each U.S. State and a Country
Among the U.S. states excelling in high single-product value exports to specific countries are Michigan, exporting $15.36 billion worth of Transportation Equipment to Canada annually, and Louisiana, where China serves as the primary customer for Agricultural Products, amounting to $11.3 billion per year.
In contrast to the significant trade deficit the U.S. experiences with China, Louisiana stands out as the leading trader among eight states that maintains an annual surplus with the Asian giant. Achieving a record global surplus of $85.1 billion in 2022, Louisiana’s trade relationship with China remains robust, even with new tariffs affecting soybeans, the state’s third top export.
The Highest Value Product That is Exported From a U.S. State to Each Country
Louisiana stands out as the leading state for goods exports when considering export share of state GDP, holding the top exporter position to 17 countries, including Poland, Egypt, and Kuwait. Meanwhile, Texas takes the lead as the primary exporter to 75 countries, the highest among all states and the second-highest when measured by the export share of state GDP.
Explaining Texas’s global trade prowess, the Texas Economic Development & Tourism office highlights its strategic location, extensive rail and road infrastructure, numerous ports of entry, a multilingual workforce exceeding the national average, a bustling international banking center, and diplomatic significance with Consular Corps representing around 90 nations. Additionally, Texas thrives in global trade due to its concentration of corporate and financial resources. Notably, the state’s export trade is propelled by its innovative, agile, and often small firms, with nearly 93% of all Texas exporters classified as small businesses.
The Methodology Behind this Study
To determine the highest value of international exports by state, the research team at OnDeck conducted an analysis using 2022 data on product exports by state from the U.S. International Trade Administration.
The researchers identified the top U.S. state exporting to each country, the highest value product exported to each country from a specific U.S. state, the country receiving the highest value product exports from each U.S. state, and the country receiving the highest value export of a particular product from each U.S. state.
Within the two-digit NAICS product classifications of Agriculture, Forestry, Fishing and Hunting, Manufacturing, and Mining, Quarrying, and Oil and Gas Extraction, experts at OnDeck also pinpointed the top country to which each U.S. state exports each of the 29 available products and the corresponding export values in a single year.
The data for this project is accurate as of October 2023.
