The OECD Trade in Value-Added database is a dataset developed by the OECD and the WTO to track the flow of goods and services across international borders, particularly focusing on the value-added contributions of different countries to global exports. Approximately 20% of US car exports comes from input imported into the US, see chart below. Across a broad range of products, the foreign value added in US exports is between 10% and 20%.
Put differently, introducing tariffs and increasing the price of US imports is going to have negative consequences for exports, in particular in the auto sector.
At a broader level, today’s dialogue should focus not only on the impact on goods imports and exports, but on long-term competitiveness, and my colleague John Zito wrote about that here.
Note: FVA intensity measure is often referred to as import content of exports and considered as a measure of backward linkages in analyses of global value chains. Sources: OECD TiVA database, Apollo Chief Economist
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