Old North News

North Carolina, the 15th largest export state in the United States, has shown significant engagement in international trade, with notable growth and recovery observed between 2019 and 2024. During this period, the state's trade sector recovered from the disruptions caused by the COVID-19 pandemic. After a sharp decline in exports by 14% in 2020, North Carolina saw a steady rebound with exports exceeding pre-pandemic levels by 7% in 2024. Imports, on the other hand, experienced an increase during the pandemic, growing by 35% from 2019 to 2024, indicating the state's growing reliance on foreign trade.

In 2024, North Carolina's exports were concentrated among its top five partners, with more than half of the exports directed to these countries. Canada emerged as the largest export destination, accounting for 20.2% of the total exports, followed by China with 13.8%, and Mexico with 11.7%. The primary commodities exported included industrial machinery, pharmaceuticals, and vehicles.

North Carolina's export industry is strongly driven by pharmaceuticals, which constituted almost 30% of the total exports in 2024. Other significant contributors are aerospace products, engines and turbines, general machinery, and basic chemicals, each representing 3% to 5% of the state's total exports.

On the import side, in 2024, North Carolina's top five import partners accounted for nearly half of its total imports, with Ireland taking the lead with 13.8%, largely focused on pharmaceuticals. Other major import partners were Mexico (13.2%), China (8.1%), and Germany (7.1%), with advanced machinery being in high demand.

North Carolina's total import value for 2024 stood at $87.6 billion, with pharmaceuticals making up the largest portion at 24.2%. Computer equipment, motor vehicles, apparel, and basic chemicals also contributed significantly to the import figures.

The state's economic dependence on trade relationships with countries such as China, Mexico, Canada, and the European Union is critical. The impact of increased tariffs on imports and exports is a concern for North Carolina's consumers, businesses, and employment sectors, particularly in industries reliant on global supply chains like pharmaceuticals, transportation equipment, electronics, and machinery.

With trade policies impacting domestic manufacturing, North Carolina, ranked as the nation's 8th largest in manufacturing GDP, could face industry shifts due to reshoring efforts or growth demands. Building new manufacturing capacity requires long-term investments in infrastructure, workforce, and supply chains. Additionally, trends in automation and advanced manufacturing, including AI and robotics, place a demand on specialized and highly skilled labor.

As national trade policies continue to change, North Carolina's economic resilience depends on adapting effectively to global market shifts. Understanding these trade dynamics is crucial for stakeholders concerned with the state's economic future and prosperity.