Tired Trade

While US exports are weakening, don’t worry. Exports account for just 14% of US GDP, less than for any other developed nation. Exports account for 30% of Canadian GDP, 51% of German GDP, 15% of Japanese GDP, and 53% of South Korean GDP. Moreover, US exports to Europe are just 15% of all exports. A 10% drop in European exports will cut GDP by 0.2%, painful but certainly not devastating.