The United States reported a $2.8 billion goods trade deficit with India in January, even as its overall trade gap narrowed sharply, according to data released by the US Census Bureau and the Bureau of Economic Analysis (BEA) on March 12.
The total US goods and services trade deficit fell to $54.5 billion in January, down from a revised $72.9 billion in December, representing a decline of $18.4 billion, or roughly 25 per cent, in a single month. Exports rose to $302.1 billion, an increase of $15.8 billion from December, while imports dropped to $356.6 billion, down $2.6 billion.
The BEA report highlighted that the US goods deficit with India alone was $2.8 billion in January. Overall, the US goods deficit fell by $17.5 billion to $81.8 billion, while the services surplus grew by $1.0 billion to $27.3 billion.
Exports of goods surged by $14.6 billion to $195.5 billion, driven mainly by industrial supplies and materials, which rose $9.4 billion. Shipments of non-monetary gold climbed $4.7 billion, and other precious metals exports increased by $4.1 billion. Capital goods exports also rose $5.4 billion, supported by higher shipments of computers, civilian aircraft, and related accessories.
In contrast, some sectors declined. Consumer goods exports fell by $2.8 billion, including a $2.1 billion drop in pharmaceutical preparations. Services exports rose modestly by $1.2 billion to $106.7 billion, led by growth in business services, financial services, and intellectual property charges, although travel services slipped slightly.
On the import side, goods imports decreased by $2.8 billion to $277.3 billion. Consumer goods imports fell by $3.3 billion, largely due to lower pharmaceutical imports. Imports of vehicles, parts, and engines dropped $2.8 billion, while industrial supplies and materials fell $1.4 billion, including non-monetary gold. However, capital goods imports increased $3.4 billion, driven by higher computer and telecommunications equipment shipments.
Trade balances varied globally. The US posted goods surpluses with the UK, Netherlands, Switzerland, Hong Kong, Saudi Arabia, Brazil, Singapore, Australia, and Belgium. Meanwhile, deficits remained large with Asian manufacturing nations, including Vietnam ($19.0 billion), Taiwan ($17.3 billion), Mexico ($12.8 billion), China ($12.5 billion), and the European Union ($6.1 billion).
