Tariffs Reshape Connecticut’s Trade Markets

Connecticut saw major shifts among its trading partners in 2025, as volatile U.S. trade policy impacted exports and imports.

Commodity exports rose a modest $324 million (1.9%) last year, the slowest growth for shipments since the pandemic caused widespread disruptions in 2020.

Connecticut imports jumped $1.18 billion, driven by a surge in key manufacturing inputs imported ahead of the Trump administration’s imposition of sweeping tariffs last spring.

U.S. Department of Commerce data shows Connecticut companies exported $17.74 billion in goods last year—a record high—although just four of the state’s top 10 markets posted increases.

U.S. companies exported a record $2.18 trillion in commodities, up 5.7% over 2024, while imports jumped $149.34 billion to $3.42 trillion (4.6%).

The U.S. trade deficit for commodities ballooned by $32.54 billion (2.7%) to a record $1.24 trillion.

Export Markets

Canada remains Connecticut’s top export destination, although sales fell $264 million to $2.12 billion. Aerospace parts again represented the largest share of shipments (24.9%) despite declining $180 million (-25.4%).

Germany remains the state’s second-largest export market, with shipments increasing $185 million to $1.98 billion, driven by an 11.9% jump in aerospace parts.

Sales to France jumped 74.6% ($620 million) to $1.45 billion, with aerospace component shipments more than doubling to $1.25 billion, moving that country from seventh to third place overall.

Commodity exports to the Netherlands rose $178 million to $1.67 billion, with that country rising one place to fourth among Connecticut’s top markets.

Mexico fell from third place to fifth overall as commodity sales declined $462 million to $1.2 billion, with aerospace parts shipments down 85.3% (-$272 million).

China posted the largest decline among all markets, with shipments falling $519 million after hitting a record high $1.46 billion in 2024.

Brazil joined the list of top 10 markets last year, with exports increasing $201 million, driven by a 104% jump in aerospace parts shipments.

South Korea fell out of the top 10, despite commodity exports increasing 8.6% to $466 million.

Top Commodity Exports

Commodity exports represent 6% of Connecticut’s $295.7 billion economy, with the export sector supporting more than 50,000 jobs.

In 2025, Connecticut’s top 10 commodity exports were:

• Transportation equipment: $6.17 billion, down 0.5% from 2024
• Machinery (except electrical): $3.52 billion (+5.4%)
• Computer and electronic products: $1.2 billion (-4.3%)
• Fabricated metal products: $1.2 billion (+8.9%)
• Chemicals: $1.2 billion (+8.4%)
• Electrical equipment, appliances, and components: $1.12 billion (-4.5%)
• Other special classification provisions: $969 million (+25%)
• Miscellaneous manufactured products: $497 million (-1.4%)
• Primary metal products: $387 million (+6.3%)
• Plastics and rubber products: $371 million (+6.3%)

Connecticut ranks 27th nationally for exports and is the number two exporter in New England behind Massachusetts, which shipped $38.8 billion in goods last year, up $3.79 billion (10.8%) from 2024.

New Hampshire exports rose $46 million (0.6%) to $7.18 billion, with Rhode Island posting a $1.1 billion increase (35.5%) to $4.19 billion.

Maine shipments rose $73 million (2.3%) to $3.19 billion while Vermont exports increased $165 million (8.7%) to $2.06 billion.

Mexico replaced Canada as the top market for overall U.S. exports, with shipments increasing $3.93 billion (1.2%) to $337.9 billion.

Commodity exports represent 6% of Connecticut’s $295.7 billion economy.

Shipments to Canada fell $9.6 billion (-5.6%) to $329.8 billion, while commodity sales to China slumped $36.92 billion (-25.8%) to $106.31 billion.

Exports to the United Kingdom jumped $17.48 billion (21.9%) to $97 billion and shipments to the Netherlands rose $7.42 billion (8.4%) to $95.64 billion.

Texas was again the top state for exports in 2025, with commodity shipments falling 0.9% (-$4.14 billion) to $450.27 billion.

California exports increased 2.4% to $188.4 billion, followed by New York (+62.8%; $153.09 billion), Louisiana (+7.8%; $93.39 billion), and Illinois (-2.4%; $79.96 billion).

Metal Imports Drive Increase

Connecticut commodity imports rose 5.2% to a record $24.02 billion in 2025, with iron, steel, aluminum, and other primary metal imports soaring 49% as manufacturers stocked up ahead of last year’s tariffs.

Primary metals represented 22% of all imports, with shipments increasing $1.74 billion—$560 million more than the net $1.18 billion rise in all imported goods, with notable declines in machinery, petroleum and coal products, computers and electronics, processed food, and furniture.

While Connecticut runs trade surpluses with seven of its top export markets—Canada, Mexico, and China are the exceptions—the state imported $6.28 billion more in goods last year than it exported.

Canada remains Connecticut’s largest trading partner, accounting for $5.71 billion of all imported goods—down $24 million from 2024.

Imports from Mexico surged by more than $1.5 billion to $5.15 billion, with shipments of primary metals rising $1.6 billion and accounting for 76.4% of all goods that Connecticut imported from that country last year.

Commodity shipments from Germany increased $133 million to $1.73 billion, with imports from the Netherlands declining $168 billion to $1.22 billion.

Imports from China declined again—down $214 million to $1.13 billion—and have fallen 62.8% in the past decade, while Canadian imports increased 66.4% and Mexican imports grew 107.7% over the same period.

That mirrors the national picture—Chinese shipments to the U.S. declined $130.36 billion to $308.38 billion last year (-29.7%) and are now $174.82 billion below 2015 levels (-36.2%).

Mexico is now the U.S.’s largest trading partner, with imports from that country rising $29.35 billion last year to $534.87 billion (5.8%).

Imports from Canada fell $28.93 billion to $382.96 billion (-7%), with declines in a number of areas, including oil and gas, transportation equipment, metals, chemicals, and petroleum and coal products.