“How can it only be 2.7% when almost everything in Wal-Mart (NYSE: WMT ) is made in China?” Because Wal-Mart’s $260 billion in U.S. revenue isn’t exactly reflective of America’s $14.5 trillion economy. Wal-Mart might sell a broad range of knickknacks, many of which are made in China, but the vast majority of what Americans spend their money on is not knickknacks.”
We also spend far more on others than we realize: Housing, Commodities (especially Food and Energy) and Services (Health Care, Financial, Accounting, Education etc.). Housel noted that in 2010, “we spent 34% of their income on housing, 13% on food, 11% on insurance and pensions, 7% on health care, and 2% on education. Those categories alone make up nearly 70% of total spending, and are comprised almost entirely of American-made goods and services.”
Most people think that “everything in US is made in China nowadays” when in reality most products and services that we consume are made and come from USA.
People erroneously think that a much larger percentage of their expenditures are products and services from China, you hear it all the time. (ask everyone you know nobody will say only 3% of our spending is on stuff from china) I am trying to point out we are not as exposed as some people think we are to Chinese trade wars.