Imports

VII. Imports and U.S. Competitiveness
Imports contribute to improved U.S. competitiveness.
• Imports enable U.S. farmers and manufacturers to avail themselves of
lower-cost inputs to domestic production, thereby lowering the cost of
the products grown or made in the United States.
• Imports create markets for U.S. exports.
• Imports serve as a constant incentive to U.S. manufacturers to improve
quality and develop new, more innovative products.
Imports Lower the Costs of U.S. Production
The largest category of goods imported into the United States is not consumer goods, but
capital goods (e.g. machinery) and industrial supplies and materials (most notably, oil).
Together they comprised more than 61 percent of the $2.1 trillion in goods Americans
imported in 2012 (see Table 13). These goods are imported
because they are not produced in the United States at all, are not
produced in the United States in sufficient quantities to meet all of
the demand of U.S. companies, or are not produced in the United
States at prices manufacturers and farmers can afford. They
include, for example, fertilizers used by farmers, fibers and
machinery used by U.S. textile producers, and fuel, among many others.
Much of the public’s attention is focused on losses suffered by domestic producers
because of imports, rather than the many benefits imports provide to farmers and
manufacturers. The same benefits American households receive from imports —
expanded choice and lower prices — also accrue to farmers and manufacturers who use
imported inputs, components and other raw materials in their domestic production. These
benefits ultimately contribute to their enhanced competitiveness both at home and abroad.
Their costs are lower, their products are better, and they can sell more at internationally-
The largest category of goods
imported into the United States
is not consumer goods, but
capital goods and industrial
supplies and materials