COVID-19 Impact on Imports and Exports
Duty Drawback Software | Import Export Consulting | Processing Filing | Full ServiceWhat is DrawbackContact usThe COVID-19 pandemic has no doubt affected both U.S. imports and U.S. exports significantly. Because the U.S. imports more than they export, U.S. imports have overall gone down more in U.S. dollars than exports. That being said both sides have seen drastic changes because of the COVID-19 pandemic. For example, imports of crude oil have decreased by ~40% since the beginning of the COVID-19 pandemic. This makes sense simply because people are driving a lot less. This led to a price decrease and we have seen that oil prices have been down dramatically as of recent. Also, things like cell phone and television imports are down. We have seen that on average people are holding off on purchasing these expensive technology devices. This might be due to lack of income or simply the fear of going out to retail stores. And although these industries have seen a decrease, some industries have seen a drastic increase. Medical devices and equipment for example. U.S. imports of medical equipment are holding up and imports of pharmaceuticals are up ~15%. We are seeing that this pandemic has created opportunities for some industries yet created serious problems for others. On the U.S. export side of things two of the biggest exports, aircraft and automobile parts, have seen a drastic drop of 30-40%. But like the scenario with crude oil, it makes sense. Airlines all over the world are cutting back their expansion plans. People are holding their money tight and pushing back those big purchases for things like autos. On the other hand, industries like semiconductors do not seem to be suffering as much. U.S. semiconductor exports increased by 12% since the beginning of the pandemic. This partly reflects that Asia is recovering quickly from the recession. So, though exports have been down overall in the U.S. some industries are seeing a slight surge. Overall, the import and export business in the U.S. is hurting. Most industries are suffering yet there are some that are benefiting. You can expect that if the COVID-19 cases in the U.S continue to rise these import and export trends will continue. It will not be until a vaccine is safely tested and distributed or case numbers decrease that we see a change in the import and export business.