Study Names States 'Most Dependent On Imports' (Here's Where New Jersey Ranked)

NEW JERSEY — New Jersey is among the states that are the most dependent on foreign imports, a new study says.

The National Association of Realtors released the results of a new report this week, which analyzed what states “rely most on exports and imports” relative to their gross domestic product (GDP).

“With headlines buzzing about new tariffs, it's normal to wonder how much each state depends on international trade,” researchers explained. “More broadly, how tied is the U.S. economy, state by state, to the flow of goods coming in and out of the country?”

“While it's too early to assess the impact of the latest trade developments, this is a good time to take a step back and look at the big picture,” researchers added.

Read the full study and learn about its methodology here. See the full chart for New Jersey below.

IMPORTS

New Jersey’s imported goods are equal to 18.1 percent of its GDP, researchers found.

The highest-rated state in the study? Kentucky, which has imports equal to 32.3 percent of its GDP. Others include Michigan (24.5%), Tennessee (21.9%), Indiana (20.2%) and Illinois (19.2%).

Top imports in New Jersey include motor vehicles, petroleum/coal products, pharmaceuticals and medicines, oil and gas, and fruits/tree nuts.

New Jersey’s top trade partners for imports include China, the United Kingdom, Canada, India and Italy.

EXPORTS

On the flip side of the coin, New Jersey sees 5.1 percent of its GDP coming from exports, the study found.

It was a number similar to other nearby states such as New York (4%), Pennsylvania (5.2%) and Connecticut (4.8%) – but well behind states like Louisiana, which leads the nation with 26.5 percent of its GDP coming from exports.

It’s worth noting that some states rank lower on the export spectrum because their economies are driven by finance, tourism and entertainment, researchers said.

New Jersey’s top exports include non-ferrous metals, chemicals, computer equipment, petroleum and coal products, and cleaning compounds/toilet preparations.

The state’s top export partners include Canada, Mexico, Japan, China and Germany.

WHY IT MATTERS

There are lots of reasons why the average New Jersey resident should care about export and import numbers, according to the National Association of Realtors (NAR).

“First, in the labor market, thousands of jobs – both directly and indirectly – are tied to global business,” researchers explained.

That includes the state’s massive chemical manufacturing sector.

In New Jersey, chemical production reigns as the state’s largest manufacturing industry, boasting a robust $15.48 billion valuation – ranking it as the eighth-largest nationwide. The industry creates 19,000 direct jobs, while generating $2.10 billion in payroll, according to the Chemistry Council of New Jersey.

Housing markets are also influenced by foreign trade, according to the NAR, which has members that include residential and commercial brokers, salespeople, property managers, appraisers and counselors.

“Home prices have increased more rapidly in states that were less reliant on trade,” the study claims. “Low trade-reliant states experienced an average home price rise of 291%, while high trade-reliant states lagged behind with an average of 237%.”

States like Florida (406% home price rise), Washington (379%), and Colorado (377%) – which have more modest export footprints – saw the most significant housing appreciation.

New Jersey’s home price growth from 1994 to 2004 came in at 285 percent, the NAR’s study found.

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