he United States recorded a $4.1 billion goods trade deficit with India in May, according to newly released official figures. The data came as America’s overall trade deficit increased significantly during the month due to lower exports and higher imports.
Figures released by the US Census Bureau and the Bureau of Economic Analysis showed that the US goods and services trade deficit jumped by $23 billion, or 42.2%, reaching $77.6 billion in May compared with a revised $54.6 billion in April.
The rise in the trade gap was driven by a $10.5 billion decline in exports, which fell to $317.7 billion, while imports climbed by $12.5 billion to $395.3 billion. Among major global trading partners, India remained one of the countries contributing to the US goods trade imbalance, though its deficit was considerably lower than several leading manufacturing economies.
The largest US goods trade deficits during the month were recorded with Vietnam at $20.6 billion, Mexico at $20.1 billion, Taiwan at $19.4 billion, China at $14.5 billion, the European Union at $9.3 billion, Canada at $7 billion, Germany at $5.7 billion, Malaysia at $4.7 billion, South Korea at $4.4 billion, and India at $4.1 billion.
The figures reflect India’s expanding importance within Asia’s manufacturing and supply chain landscape. Although countries such as Vietnam, Taiwan, and China continue to account for larger portions of the US trade deficit, India has steadily strengthened its position as a supplier of goods to the American market.
The report noted that the overall increase in the US trade deficit was mainly due to a $23.6 billion rise in the goods deficit, which reached $106.5 billion. This was partially balanced by a $0.6 billion increase in the services surplus, bringing it to $28.9 billion.
Goods exports declined by $11.3 billion, primarily due to reduced shipments of industrial materials, capital goods, and consumer products. Meanwhile, services exports saw an increase of $0.8 billion. Imports of goods rose by $12.3 billion to $317 billion, supported by higher purchases of consumer products, pharmaceuticals, mobile phones, vehicles, industrial supplies, and capital equipment.
Consumer goods imports increased by $3.5 billion, including a $1.9 billion rise in pharmaceutical preparations and a $1 billion increase in mobile phones and household goods. Pharmaceuticals continue to remain one of India’s major export categories to the US.
Compared with the same period in 2025, the US goods and services trade deficit declined by $203.9 billion, or 40.6%. During this period, exports grew by $164.7 billion, while imports dropped by $39.2 billion.
Over the past decade, India has emerged as one of America’s fastest-growing trade partners. Trade between the two nations has expanded across sectors including pharmaceuticals, electronics, engineering goods, chemicals, textiles, and gems and jewelry. The US remains India’s largest export market, while India continues to become an important destination for American energy, aircraft, defense, and technology exports.
