ADVERTISEMENT
ADVERTISEMENT
US trade gap widens; India deficit narrows
U.S. exports in March stood at $320.9 billion, an increase of $6.2 billion from February, while imports climbed by $8.7 billion to $381.2 billion.
-
IANS - Wed, 06, May 2026
- 05:10 EDT
- 34
Representative Image / istock
The United States trade deficit widened in March as imports outpaced exports, even as the American goods gap with India narrowed compared to the same period last year, according to official data.
The U.S. Census Bureau and the Bureau of Economic Analysis said the overall goods and services deficit rose to $60.3 billion in March, up $2.5 billion from a revised $57.8 billion in February.
U.S. exports in March stood at $320.9 billion, an increase of $6.2 billion from February, while imports climbed by $8.7 billion to $381.2 billion.
For India, the latest figures showed the U.S. goods trade deficit with the country at $3.8 billion in March on a seasonally adjusted basis, lower than the $7.4 billion deficit recorded in March 2025.
The detailed country data showed U.S. exports to India rose to about $4.3 billion in March, while imports from India totalled around $8.4 billion.
The report comes at a time when India and the U.S. are engaged in negotiations over trade access, supply chains, technology cooperation and tariff issues, amid broader efforts to deepen economic ties.
The March increase in the overall U.S. trade deficit was driven largely by a rise in the goods deficit, which increased $4.1 billion to $88.7 billion. The services surplus also widened by $1.6 billion to $28.4 billion.
Exports of industrial supplies and materials increased sharply by $5 billion in March, led by higher crude oil and petroleum product shipments. Crude oil exports alone rose by $2.8 billion.
Imports, meanwhile, were boosted by a surge in automotive products, consumer goods and capital goods. Imports of automotive vehicles, parts and engines increased by $3.6 billion, while passenger car imports rose by $2.8 billion.
ALSO READ: Trump touts economy, ‘America first’ push
Imports of computer accessories increased by $2 billion, reflecting continued demand for electronics and technology products.
The data also showed that the U.S. goods deficit with China stood at $14 billion in March, while deficits with Vietnam and Taiwan remained significantly higher at $19.2 billion and $20.6 billion respectively.
India ranked among the countries with which the U.S. recorded sizeable trade deficits, though the gap remained far smaller than those with China, Mexico and Vietnam.
Year-to-date, the U.S. goods and services deficit declined by $211.2 billion, or 55 per cent, from the same period in 2025. Exports rose by $100.2 billion, while imports fell by $111 billion.
The report also noted that the average three-month U.S. trade deficit fell to $57.6 billion for the period ending March, indicating some moderation despite the monthly rise.
India and the United States have steadily expanded bilateral trade over the past decade, with sectors such as pharmaceuticals, information technology services, electronics, energy and engineering goods driving growth. Washington remains one of India’s largest export destinations.
Trade tensions, however, have persisted over tariffs, market access, digital trade rules and supply chain localisation. Both governments have recently intensified talks aimed at strengthening economic cooperation while reducing friction in strategic sectors including semiconductors, clean energy and advanced manufacturing.
Discover more at New India Abroad.
Related
ADVERTISEMENT
ADVERTISEMENT
E Paper
Video
Comments
Start the conversation
Become a member of New India Abroad to start commenting.
Sign Up Now
Already have an account? Login