Trade statistics released this month by the U.S. Department of Commerce show that California, despite lower annual trade numbers, remained a top exporting state in 2023.
California exported $178.71 billion worth of goods to the world in 2023 — down from $186.23 billion in 2022. Overall, imports from the world to California were down in 2023 to $449.48 billion worth of goods from $508.80 billion in 2022.
The result is that total California trade is down to $628.20 billion in 2023 from $694.27 in 2022.
As usual, computer and electronic products made up the bulk of California exports.
U.S. Trade Overview
In 2023, the United States exported a total of $2.019 trillion in goods to the world and imported $3.084 trillion, creating a goods deficit of $1.065 trillion.
For the first time in two decades, the United States imported more from Mexico than China. The United States’ trade deficit with China narrowed significantly last year, with goods imports from the country dropping 20% to $427.2 billion.
The U.S. trade gap in advanced technology goods shrank nearly 10% last year from the record set in 2022, largely due to higher aerospace exports and lower imports from China.
U.S. aerospace exports increased to nearly $127 billion, from about $105 billion in 2022. Exports of biotechnology and life science products also showed growth, offsetting declines in electronics and flexible manufacturing products.
California Export Markets
California’s top five export markets remained the same in 2023, in order: Mexico, Canada, China, Japan and South Korea.
Taiwan remained California’s sixth largest export partner, the Netherlands in seventh place, followed by Germany, the United Kingdom, now at ninth (replacing India, now 11th), and Hong Kong.
• Exports from California to Mexico increased from $30.79 billion in 2022 to $33.26 billion in 2023, maintaining the country’s spot as California’s top export partner.
• Canada remained California’s second largest export destination with $19.07 billion worth of goods; however, exports to Canada decreased from $20.58 billion in 2022.
• California exports to China totaled $16.87 billion in 2023, a decrease from $18.15 billion in 2022.
• Exports from California to Japan totaled $10.62 billion in 2023, a decrease from $11.64 billion in 2022.
• South Korean imports of California goods totaled $9.39 billion in 2023, a decrease from $11.57 billion in 2022.
• Taiwan remained California’s sixth largest export partner in 2023, taking $8.84 billion worth of California goods, down from $10.42 billion in 2022.
• Exports from California to the Netherlands totaled $6.12 billion in 2023, down from $6.51 billion in 2022.
• Exports from California to Germany totaled $5.90 billion in 2023, a decrease from the 2022 figure of $6.25 billion.
• The United Kingdom became California’s ninth largest export partner in 2023, with $5.73 billion worth of exports — replacing India, now ranked 11th.
• California exports to 10th-ranked Hong Kong were $5.59 billion in 2023, a small increase from $5.56 billion in 2022.
California Imports
In 2023, California imported $120.11 billion of goods from China — down from $147.77 billion the previous year.
• Mexico imports increased to $61.51 billion from $60.46 billion in 2022.
• Imports from Taiwan were up to $29.24 billion in 2023 from $28.59 billion in 2022.
• Vietnamese imports to California declined to $28.16 billion from $29.03 billion the previous year.
• Japan sent fewer goods to California in 2023 — $25.77 billion, which was down from $29.33 billion in 2022.
• South Korea also sent significantly fewer goods to California in 2023 — $23.84 billion, which was down from $31.14 billion the previous year.
• Imports from Canada to California were down significantly, totaling $15.72 billion in 2023 compared to $23.78 billion in 2022.
• German goods sent to California in 2023 increased to $15.04 billion from $14.20 billion in 2022.
• Imports from Thailand to California were down to $13.66 billion from $16.40 billion in the previous year.
• Imports from Malaysia to California also were down to $10.52 billion in 2023 versus $12.45 billion in 2022.
Export Commodities
Exports in California’s top category, computer and electronic products, decreased from $41.61 billion in 2022 to $40.99 billion in 2023.
Transportation equipment (the only top commodity that increased) went from $17.11 billion in 2022 to $18.22 billion in 2023.
Nonelectrical machinery exports decreased from $21.87 billion in 2022 to $17.67 billion in 2023. Exports of chemicals ($17.04 billion) and agricultural products ($13.70 billion) decreased in 2023.
The top import category for California in 2023 was computer and electronic products at $116.69 billion. Other top imports to the Golden State included transportation equipment, electrical equipment, manufactured products, and oil and gas.
CalChamber Position
California is one of the 10 largest economies in the world with a gross state product of more than $3.5 trillion. International trade and investment are major parts of our economic engine that broadly benefit businesses, communities, consumers and state government.
California’s economy is diverse, and the state’s prosperity is tied to exports and imports of both goods and services by California-based companies, to exports and imports through California’s transportation gateways, and to movement of human and capital resources.
Although trade is a nationally determined policy issue, its impact on California is immense. California exports to more than 227 foreign markets. Trade offers the opportunity to expand the role of California’s exports. In its broadest terms, trade can literally feed the world and raise the living standards of those around us.
The California Chamber of Commerce supports expansion of international trade and investment, fair and equitable market access for California products abroad, and elimination of disincentives that impede the international competitiveness of California business.
