America’s goods trade deficit with India stood at $4.1 billion in May as the overall US trade gap widened sharply on weaker exports and higher imports….reports Asian Lite News Desk
The United States recorded a goods trade deficit of $4.1 billion with India in May, according to official data released on Tuesday, as the country’s overall trade deficit widened sharply amid falling exports and rising imports.
The latest figures from the US Census Bureau and the Bureau of Economic Analysis showed that the overall US goods and services trade deficit increased by $23 billion, or 42.2 per cent, to $77.6 billion in May from a revised $54.6 billion in April.
During the month, US exports fell by $10.5 billion to $317.7 billion, while imports rose by $12.5 billion to $395.3 billion.
Among major trading partners, India recorded a goods trade surplus with the United States, resulting in a US goods trade deficit of $4.1 billion.
The largest US goods trade deficits in May were 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 underscore India’s growing role in Asian manufacturing and global supply chains, although the US goods trade imbalance with India remains significantly smaller than those with several other major export-oriented economies in the region.
According to the report, the widening of the overall US trade gap reflected a $23.6 billion increase in the goods deficit to $106.5 billion, partly offset by a $0.6 billion rise in the services surplus to $28.9 billion.
Goods exports declined by $11.3 billion during the month, largely due to lower shipments of industrial supplies and materials, capital goods and consumer goods. At the same time, services exports increased by $0.8 billion.
Goods imports rose by $12.3 billion to $317 billion in May.
Consumer goods imports increased by $3.5 billion, driven by a $1.9 billion rise in pharmaceutical preparations and a $1 billion increase in imports of mobile phones and other household goods. Imports of industrial supplies, automotive vehicles and capital goods also increased.
While the report does not provide a country-wise breakdown for these product categories, pharmaceuticals remain one of India’s largest merchandise exports to the United States.
The report also showed that the US goods and services deficit declined by $203.9 billion, or 40.6 per cent, compared with the corresponding period in 2025. During that period, exports increased by $164.7 billion, or 11.7 per cent, while imports fell by $39.2 billion, or 2.1 per cent.
For the three months ending in May, the average US goods and services trade deficit increased by $7.5 billion to $62.9 billion. Average exports rose to $321.5 billion, while average imports increased to $384.5 billion.
India has emerged as one of the fastest-growing trading partners of the United States in recent years, with bilateral trade expanding across sectors including pharmaceuticals, engineering goods, electronics, chemicals, textiles, and gems and jewellery.
The United States remains India’s largest export market, while India has become an increasingly important destination for US exports, including energy products, aircraft, defence equipment and advanced technology.
