USA As An Export Market
The United States or USA has been the top economy in the world with its GDP at $27 trillion as of 2023. It has historically held the number 1 position in total global imports and number 2 in total global exports.Read more
List of top 10 products imported by USA
- Machinery (15%)
- Electrical Machinery and Equipment (14.2%)
- Vehicles (10.5%)
- Pharma Products (5.8%)
- Mineral Fuels and Oils (5.4%)
- Pearls and Precious (4.4%)
- OptMedical Equipment (3.7%)
- Furniture, Bedding, Mattresses, etc. (2.7%)
- Plastics (2.5%)
- Organic Chemicals (2.3%)
The top 10 products imported by the USA account for 64% of its overall import shipments.
Top countries that export to USA
USA import data and market research reports show US top 10 import partners are:
- China (USD 457.1 billion)
- Mexico (USD 328.8 billion)
- Canada (USD 277.3 billion)
- Japan (USD 122.4 billion)
- Germany (USD 117.4 billion)
- Vietnam (USD 83.2 billion)
- South Korea (USD 78.3 billion)
- Switzerland (USD 75.5 billion)
- Ireland (USD 65.7 billion)
- Taipei, Chinese (USD 62.4 billion).
According to the available data, the top 10 countries that the USA imports make up for nearly 70% of all its trade. Customs data shows that nearly half of US import value was sourced from Asian countries and 48% from Canada, Mexico and European countries.
Importance of Trade financing when exporting to the USA
Trade financing can play an integral role in ensuring hassle-free transacting and risk mitigation, when exporting to the USA. Here are some key reasons highlighting the importance of trade financing when exporting to the USA:
- Managing Payment Risks: Exporters bear the risk of not getting paid or getting paid late when they engage in international trade. Trade finance instruments like letters of credit (LCs) provide a certain amount of security by guaranteeing payment upon fulfillment of preset conditions. As a result, the danger of non-payment is reduced for exporters, and they are given the confidence they require to do business with US consumers
- Access to Working Capital: When exporting goods to the USA, it is sometimes necessary to pay production, shipping, and other related costs in advance. Trade financing solutions, such as trade loans, give exporters access to operating capital, allowing them to finance their export-related activities. With the help of this funding, exporters can execute orders without exhausting their own resources, and continual cash flow is guaranteed.
- Expansion: The USA's import industry, opens up the opportunity for exporters worldwide to expand into this market. However, you could require more funds and resources to enter this industry. Through trade finance options like export credit agencies (ECAs), exporters can receive insurance, credit, and guarantees that allow them to compete on a larger scale and expand their market reach. With financial assistance, exporters can confidently research new business opportunities in the USA.
- Competitive Pricing: When exporting goods to the USA, competitive pricing is crucial due to the country's dynamic and price-sensitive market. With trade financing like supplier financing, where exporters negotiate credit arrangements with US buyers, deferred payment periods are conceivable. Thanks to this flexibility, exporters can provide competitive prices without endangering their cash flow.
- Building Good Relationships: Creating long-lasting relationships with US customers is essential for long-term export success. Trade financing systems contribute to the development of this trust by ensuring the security and dependability of payment transactions. Exporters can use tools like LCs and attractive financing terms to forge stronger business relationships with their US rivals. More recurring business and increased market penetration may result from this.
Trade financing on KredX GTX
KredX GTX is the first International Trade Finances Services (ITFS) platform licensed by the International Financial Services Centre Association (IFSCA), a statutory authority established by the Government of India. It is a unique, fully-digitised, international trade finance exchange, catering to the financing needs of Indian exporters.
The KredX GTX platform helps you acquire export financing with complete ease. The GTX platform will provide flexible financing options at the lowest rates that fit your specific needs. On the GTX platform exporters can find:
- Large pool of financiers from across the globe
- Transparent bidding system for competitive, best-in-class financing rates
- Effortless and quick disbursal through our self-serve digital platform
- No additional security or collateral required
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