The United States recorded a goods trade deficit of $54.91 billion with India over the past 12 months, placing the South Asian nation among Washington’s key deficit partners. The data comes amid a broader increase in the US trade gap, which rose to $57.35 billion in February, up $2.67 billion from January, though still 11 percent below the 12-month average.
The monthly rise in the deficit was largely driven by faster-growing imports compared to exports. In February, total US exports reached $314.8 billion, while imports climbed to $372.1 billion. Focusing on goods trade, the US ran a deficit of $84.60 billion, partially offset by a services surplus of $27.26 billion. The goods deficit expanded from January, whereas the services surplus edged lower.
India stood out as a notable trade partner, with February alone showing a goods deficit of roughly $3.5 billion. Over the 12 months through February 2026, India accounted for about 5.01 percent of the total US goods trade deficit, highlighting stable trade flows between the two nations. Imports from India reached $101.97 billion, reflecting India’s role in supplying pharmaceuticals, engineering goods, and other products to the US market. These imports generated $12.34 billion in US customs duties, with an average applied tariff rate of 12.12 percent.
Overall, the US trade deficit remained heavily influenced by larger imbalances with Mexico, Vietnam, and China, which continue to top the goods deficit list. Exports rose in February due to higher shipments of industrial supplies, nonmonetary gold, and natural gas, while services exports increased modestly. Imports grew faster, led by demand for capital goods, computers, semiconductors, crude oil, and pharmaceuticals.
Leading US exports over the past year included civilian aircraft, pharmaceuticals, and nonmonetary gold, while imports were dominated by pharmaceuticals, computers, and passenger vehicles. Despite the monthly increase, year-to-date trends indicate some easing of trade imbalances, with exports rising and imports falling annually. In February, the US collected $21.24 billion in import duties, about 13 percent below the 12-month average, with an average applied duty of 8.48 percent.
