KC Fed: Oklahoma Not Entirely Insulated From Trade Issues

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New research from the Federal Reserve Bank of Kansas City finds that while Oklahoma has less exposure to international trade than other states, it’s not fully insulated from trade issues. The report points out that the state’s exports are concentrated in durable equipment, metals and machinery - the bulk of which are aerospace parts going to Europe, Asia and the Middle East. While the state has a lower percentage of exports going to Mexico and China than the US as a whole, it has more exposure to Europe and Canada.

On the import side, the Kansas City Fed points out that Canada accounts for half of the state’s imports, the vast majority of which are heavy crude, and that  this makes the state’s energy prices vulnerable to currency movements, commodity prices, and tariffs. Overall, while the percentage of Oklahoma’s GDP from both imports and exports is about half the national average, the Kansas City Fed found that the product concentration in the state’s trade profile represents a vulnerability.

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