In recent years the United States has found itself operating with an increasingly global economy. Not only are a large number of the goods consumed by Americans made in other countries but many of the goods produced in the United States are manufactured from foreign components. In the year 1960 exports of goods and services accounted for 4.8% of GDP, by the year 2000 exports had increased to 10.28% of GDP. The U.S. balance of payments also changed from a surplus of $2.4 billion in 1960 to a deficit of $331.2 billion for the year 2000. Also note, that in 1960, U.S. owned assets abroad totaled $4.1 billion while Foreign owned U.S. assets were $2.3 billion ( a U.S. surplus of $1.8 billion). By the year 2000 U.S. owned assets abroad totaled $581 billion while Foreign owned U.S. assets were $1,024 billion (a U.S. deficit of $579 billion).

The trade deficit is financed by borrowing by selling U.S. assets to foreign investors. The U.S. is the world's largest debtor nation.

The goods deficit with China decreased from $83.8 billion in 2000 to $83.0 billion in 2001. Exports increased $3.0 billion (primarily transport equipment, telecommunications equipment, and electrical machinery) to $19.2 billion, while imports increased $2.3 billion (primarily footwear, furniture and bedding, and manufactures of metal) to $102.3 billion.

The goods deficit with Japan decreased from $81.6 billion in 2000 to $69.0 billion in 2001. Exports decreased $7.3 billion (primarily electrical machinery, computers and computer products, and tobacco and tobacco products) to $57.6 billion, while imports decreased $19.9 billion (primarily electrical machinery, computers and computer products, telecommunications equipment, and automobiles and automobile parts) to $126.6 billion.

The goods deficit with Canada increased from $51.9 billion in 2000 to $53.3 billion in 2001. Exports decreased $15.2 billion (primarily electrical machinery and automobiles and automobile parts) to $163.7 billion, while imports decreased $13.9 billion (primarily telecommunications equipment, automobiles and automobile parts, and petroleum and petroleum products) to $217.0 billion.

A majority of U.S. trade is with industrial nations. The following list shows our major trading partners in millions of dollars