The United States is party to many free trade agreements (FTAs) worldwide.
Beginning with the Theodore Roosevelt administration, the United States became a major player in international trade, especially with its neighboring territories in the Caribbean and Latin America. The United States helped negotiate the General Agreement on Tariffs and Trade (later the World Trade Organization).
The United States has a highly developed diversified market-oriented mixed economy. It is the world's largest economy by nominal GDP and second largest by purchasing power parity (PPP). As of 2025, it has the world's ninth-highest nominal GDP per capita and eleventh-highest GDP per capita by PPP. According to the World Bank, the U.S. accounted for 14.8% of the global aggregate GDP in 2024 in purchasing power parity terms and 26.2% in nominal terms. The U.S. dollar is the currency most used in international transactions and the world's foremost reserve currency, backed by a large U.S. treasuries market, its role as the reference standard for the petrodollar system, and its linked eurodollar. Several countries use it as their official currency and in others it is the de facto currency. Since the end of World War II, the economy has achieved relatively steady growth, low unemployment and inflation, and rapid advances in technology.
The American economy is fueled by high productivity, well-developed transportation infrastructure, and extensive natural resources. Americans have the sixth highest average household and employee income among OECD member states. In 2021, they had the highest median household income among OECD countries, although the country also had one of the world's highest income inequalities among the developed countries. The largest U.S. trading partners are Mexico, Canada, China, Japan, Germany, South Korea, the United Kingdom, Taiwan, India, and Vietnam. The U.S. is the world's largest importer and second-largest exporter. It has free trade agreements with several countries, including Canada and Mexico (through the USMCA), Australia, South Korea, Israel, and several others that are in effect or under negotiation. The U.S. has a highly flexible labor market, where the industry adheres to a hire-and-fire policy, and job security is relatively low. Among OECD nations, the U.S. has a highly efficient social security system; social expenditure stood at roughly 30% of GDP.
Since the 1960s, the relationship between Israel and the United States has grown into a close alliance in economic, strategic and military aspects. The U.S. has provided strong support for Israel; it has played a key role in the promotion of good relations between Israel and its neighbouring Arab states. In turn, Israel provides a strategic American foothold in the region as well as intelligence and advanced technological partnerships. Relations with Israel are an important factor in the U.S. foreign policy in the Middle East.
Israel is the largest cumulative recipient of U.S. foreign aid: up to February 2022, the U.S. had provided Israel US$150 billion (non-inflation-adjusted) in assistance. The United States' first free trade agreement was with Israel, in 1985. In 1999, the U.S. government signed a commitment to provide Israel with at least US$2.7 billion in military aid annually for ten years; in 2009 it was raised to $3 billion; and in 2019 raised to a minimum of US$3.8 billion. Since 1972, the U.S. has also extended loan guarantees to Israel to assist with housing shortages, absorption of new Jewish immigrants and economic recovery.