Author: Holly Crosby and Jeff DeBellis
As the 15th largest export state in the U.S., North Carolina plays a significant role in international trade. From 2019 to 2024, the state’s trade activity gradually recovered from pandemic disruptions and experienced solid overall growth. Unsurprisingly, exports declined sharply in 2020, falling 14%. However, levels steadily rebounded, with exports exceeding pre-pandemic levels by 7% by 2024. In contrast, imports grew throughout the pandemic as consumers substituted spending on services for finished goods. By 2024, NC’s imports had grown 35% from 2019. Increases in both exports and imports reflect NC’s growing global engagement. Particularly, the size and growth of NC’s imports highlights the state’s reliance on foreign trade.
North Carolina’s Top 5 Export Partners
In 2024, more than half of North Carolina’s exports went to just five countries. Canada was the top destination, making up 20.2% of total exports, followed by China (13.8%) and Mexico (11.7%). The most common products sent to these countries included industrial machinery, pharmaceuticals, and vehicles.
| Country | 2024 | Share of NC's Total Exports | Top 3 Commodities |
|---|---|---|---|
| Canada | $8.7 billion | 20.20% | Industrial Machinery, Pharmaceuticals, Vehicles |
| China | $5.9 b | 13.80% | Pharmaceuticals, Stone/Lime & Cement, Electric Machinery |
| Mexico | $5.0 b | 11.70% | Industrial Machinery, Electric Machinery, Chemical Products |
| France | $1.7 b | 4.70% | Aircraft, Pharmaceuticals, Nickel & Nickel Products |
| Japan | $1.0 b | 2.80% | Pharmaceuticals, Chemical Products, Aircraft |
Top 5 Industries Driving Export Growth
In 2024, North Carolina exported $42.8 billion in goods across all industries. Pharmaceuticals and medicines were the state’s top exports, making up nearly 30% of the total. Other key export industries included aerospace products, engines and turbines, general machinery, and basic chemicals, each contributing between 3% and 5% of the state’s total exports.
| Description | 2024 | Share of NC's Industry Exports |
|---|---|---|
| Total all Industries | $42.8 billion | |
| Pharmaceuticals | $12.7 b | 29.70% |
| Aerospace Products & Parts | $2.0 b | 4.70% |
| Engines & Power Transmission Equipment | $1.5 b | 3.60% |
| Other General Purpose Machinery | $1.4 b | 3.30% |
| Basic Chemicals | $1.4 b | 3.20% |
North Carolina’s Top 5 Import Partners
In 2024, North Carolina’s top five import partners accounted for nearly half of the state’s total imports. Ireland led with 13.8%, mostly from pharmaceuticals. Mexico (13.2%), China (8.1%), and Germany (7.1%) followed, filling NC’s strong demand for advanced machinery.
| Country | 2024 | Share of NC's Total Imports | Top 3 Commodities |
|---|---|---|---|
| Ireland | $12.1 billion | 13.80% | Pharmaceuticals, Cosmetics, Industrial Machinery |
| Mexico | $11.6 b | 13.20% | Industrial Machinery, Electric Machinery, Vehicles |
| China | $7.1 b | 8.10% | Industrial Machinery, Electric Machinery, Plastics |
| Germany | $6.3 b | 7.10% | Pharmaceuticals, Industrial Machinery, Electric Machinery |
| Netherlands | $5.1 b | 5.80% | Pharmaceuticals, Organic Chemicals, Inorganic Chemicals |
Top 5 Industries Driving Import Growth
In 2024, North Carolina imported $87.6 billion in goods, with pharmaceuticals and medicines making up the largest share at 24.2%. Other major imports included computer equipment, motor vehicles, apparel, and basic chemicals, each contributing between 4% and 6% of total imports.
| Description | 2024 | Share of NC's Industry Exports |
|---|---|---|
| Total all Industries | $87.6 billion | |
| Pharmaceuticals | $21.2 b | 24.20% |
| Computer Equipment | $5.4 b | 6.10% |
| Motor Vehicles | $5.2 b | 6.00% |
| Apparel | $5.1 b | 5.80% |
| Basic Chemicals | $3.5 b | 4.00% |
What Trade Wars & Tariffs Mean for North Carolina
Trade is critical to North Carolina's economy – accounting for nearly $43 billion in export revenue and $88 billion in imported products and materials. Trade relationships with China, Mexico, Canada, and the European Union are particularly important for our state. Increased tariffs on our imports and exports will have immediate impacts on NC consumers, businesses, and ultimately jobs. Sectors such as pharmaceuticals, transportation equipment, electronics, and machinery are especially exposed due to their reliance on global supply chains.
Tariff policies on U.S. imports may have implications for domestic manufacturing. As the U.S.'s 8th largest state in manufacturing GDP, North Carolina would be positioned to experience shifts related to potential industry reshoring or growth. However, reestablishing new manufacturing capacity involves long-term investments in facilities, workforce, and supply chains. These shifts may also coincide with ongoing trends in automation and advanced manufacturing (Industry 4.0), where companies across the industry are increasingly adopting robotics, AI, and relying on a more specialized, high-skilled workers These trends present both opportunities and challenges for education and workforce development systems as they adapt to evolving labor market needs.
As national trade policies evolve, North Carolina's economic future will depend on how effectively businesses, workers, and communities adapt to shifting global markets. Understanding these trade dynamics is essential for anyone concerned with the state's economic resilience and long-term prosperity.