Washington, April 3. According to government data, America has suffered a trade loss of $54.91 billion with India in the last 12 months. Due to this huge deficit, India has now become one of the countries from which America suffers the highest trade deficit. At the same time, America’s total trade deficit with other countries around the world has increased further in the month of February. Monthly data showed the US trade deficit widened to $57.35 billion in February, up $2.67 billion from January, though still 11 percent below the 12-month average.
This increase occurred because imports grew faster than exports. Total exports during the month stood at $314.8 billion, while imports reached $372.1 billion. America suffered a deficit of $84.60 billion in goods trade, while a surplus of $27.26 billion was recorded in the services sector. The goods trade deficit increased compared to January, while the services surplus decreased. India remained one of America’s major trading partners. In February alone, the US recorded a goods trade deficit of about $3.5 billion with India. In the 12-month period to February 2026, India accounted for about 5.01 per cent of the US’s total goods trade deficit, reflecting consistent trade flows between the two countries.
India was also a major source of American imports. During the same period, a total of $101.97 billion worth of goods were imported from India, which shows its role in supplying pharmaceuticals, engineering goods and other products to the US market. At the same time, $12.34 billion came in US custom duty from imports from India, whose average tariff rate was 12.12 percent. The overall trade outlook for the US showed large imbalances with Mexico, Vietnam, and China remaining the largest contributors to the merchandise trade deficit.
Exports rose in February as shipments of industrial supplies and materials increased, including non-monetary gold and natural gas. Services exports also increased slightly. However, imports increased faster due to demand for capital goods, computers, semiconductors, crude oil and pharmaceutical preparations. Among traded goods last year, civilian aircraft, pharmaceutical products and non-monetary gold were the main US exports. Talking about imports, pharmaceuticals, computers and passenger vehicles dominated.
Despite the increase in the month, the long-term trend suggests some moderation in the trade imbalance. Year-on-year data showed that the deficit has narrowed compared to the same time last year, with exports increasing and imports decreasing on an annual basis. In February, the US collected $21.24 billion in import duties, about 13 percent less than the 12-month average. The average applicable duty rate was 8.48 percent.
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