How Could Afghanistan’s Fall Impact U.S. Trade?

It has been quite a month. The US pulled all troops out of Afghanistan and the results were devastating for many families here in the US and abroad. The fallout will likely have long-term impacts on foreign relations, which will inevitably include trade. 

Afghanistan is the 147th largest supplier of goods to the US, so it will not directly have a significant impact on imports. The top imports to Afghanistan are precious metal and stones, carpets and textiles, and edible fruit and nuts. These industries will be inconvenienced, at worst. 

More importantly, we will be watching the countries that may be impacted secondarily. 

As said in Forbes magazine, foreign trade is mostly about “good products at good prices, with politics of secondary or tertiary consequence.” The US will be fighting a political battle for trade deals and foreign relations, having lost credibility on the world stage. This political battle could impact US imports in the future. 

Certainly, the impact of China’s decisions in the coming months will be the most impactful on trade. South Korea, Taiwan, and the Philippines could be among those impacted by Chinese pressure to rethink US commitments. It’s no secret that Chinese-US relations were already strained. Now China has an open door to politically impact US trade. 

Additionally, imports from India will take a hit. India received vital imports from Afghanistan which may no longer be available. Their economy will be impacted, and we still don’t know if or how that will trickle down to US imports from India. 

No matter what happens, the Copper Hill team is here to help guide you through customs compliance. We stay on top of the latest import news to make sure you don’t get caught off guard.