US imports continue to outpace exports though trade imbalance with India records notable improvement…reports Asian Lite News
The United States trade deficit widened in March as imports continued to outpace exports, although the American goods trade gap with India narrowed sharply compared to the same period last year, according to fresh official data released on Tuesday.
Figures published by the US Census Bureau and the Bureau of Economic Analysis showed the overall US goods and services deficit rose to $60.3 billion in March, up from a revised $57.8 billion recorded in February.
The increase came as imports climbed faster than exports during the month, reflecting strong domestic demand for consumer goods, vehicles and technology products.
US exports in March totalled $320.9 billion, rising by $6.2 billion from the previous month. Imports, however, increased by a larger $8.7 billion to reach $381.2 billion.
Despite the broader rise in the American trade gap, the US goods deficit with India narrowed significantly on a year on year basis. The deficit stood at $3.8 billion in March on a seasonally adjusted basis, substantially lower than the $7.4 billion recorded in March 2025.
Detailed country level data showed that US exports to India rose to approximately $4.3 billion during the month, while imports from India were valued at around $8.4 billion.
The figures come at a crucial time as India and the United States continue negotiations aimed at expanding economic cooperation and resolving trade related concerns. Discussions between the two countries have increasingly focused on supply chains, market access, tariffs, technology cooperation and strategic manufacturing sectors.
The March increase in the overall US trade deficit was driven primarily by a widening goods deficit, which rose by $4.1 billion to $88.7 billion. At the same time, the US services surplus increased by $1.6 billion to $28.4 billion, partly offsetting the broader imbalance.
American exports were boosted by strong shipments of industrial supplies and energy products. Exports in the industrial supplies and materials category rose by $5 billion, led by higher crude oil and petroleum related exports. Crude oil exports alone increased by $2.8 billion during the month.
On the import side, the United States saw sharp increases in purchases of automotive products, consumer goods and capital equipment.
Imports of automotive vehicles, parts and engines surged by $3.6 billion, with passenger car imports alone rising by $2.8 billion. Imports of computer accessories also climbed by $2 billion, reflecting sustained American demand for electronics and technology related goods.
The data also highlighted the scale of America’s trade deficits with several major manufacturing economies. The US goods deficit with China stood at $14 billion in March, while the gaps with Vietnam and Taiwan were even higher at $19.2 billion and $20.6 billion respectively.
Although India remained among the countries with which the US recorded sizeable trade deficits, the gap was far smaller compared to those involving China, Mexico and Vietnam.
Year to date, however, the broader US goods and services deficit declined by $211.2 billion, or 55 per cent, compared to the same period in 2025. During that period, exports rose by $100.2 billion, while imports fell by $111 billion.
The report also showed that the average three month US trade deficit moderated to $57.6 billion for the period ending March, suggesting some easing in trade imbalances despite the latest monthly increase.
