American Tariffs: Imports as Production Inputs and American Exports

Updated July 30, 2025

This news, initially published on December 11, 2010, on the ExportUSA website, captured an aspect that seemed secondary at the time but today, in an era of profound changes in U.S. trade policies and global supply chains, takes on new dimensions.

Italian imports to America also include products, industrial machinery, materials, equipment, components, and parts that the American industry uses for production. A portion of this production is then intended for internal consumption in the American market or for export. In other words: to some extent, America's imports represent an input for the American manufacturing industry. In this sense, American tariffs become a burden on the productive activity of the United States, making it more difficult to compete in international markets for American exports and, on the other hand, increasing the price of products intended for sale in the American market.

Updated December 11, 2010

Exports from the United States of America are boosting sales for Italian companies in America.

Exports from America are up by 3.2%, and the U.S. balance of payments deficit was filled in October.  The increase in exports is mainly focused on industrial goods, soybeans [to China], and heavy machinery like the export of earthmoving machines [think Caterpillar...]

At the same time, American imports decreased by 0.5%.

All of this, if sustained, should add 0.5% to U.S. economic growth for the entire year of 2010. This news, which at first glance seems unfortunate for the export of Italian companies, is actually good news.

This is suggested by our small and humble experience as a small export agency in the United States.

It may just be a coincidence, but we saw a client company, which produces forged parts, increase its sales to Caterpillar [which uses these forged parts exported to America] to build the earthmoving machines that it then exports worldwide.

Similarly, another client company started exporting and selling agricultural machines to the United States [at the end of the day, if American soybean exports increase, it will also need to be produced...]

In short, even on our small scale, we are witnessing a mechanism of integration in global international trade that starts from U.S. exports and spreads to Italian companies that in turn see their sales in America increase.