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US Trade Deficit Widens, India Gap Hits $58.2 Billion in 2025

The U.S. trade deficit widened sharply in December 2025, rising to $70.3 billion from a revised $53.0 billion in November. For the full year 2025, the U.S. recorded a significant goods deficit of $58.2 billion with India, placing it among America's larger bilateral trade gaps. The December increase was driven by a surge in goods imports, including capital goods and industrial supplies, while goods exports declined. The data highlights India's role as a key goods supplier to the U.S. as Washington diversifies Asian supply chains.

Key Points: US Trade Deficit Widens; India Gap at $58.2 Billion

  • US Dec deficit jumps to $70.3B
  • Annual goods gap with India hits $58.2B
  • Exports fell, imports rose in December
  • India among top US bilateral trade deficits
2 min read

US trade gap widens; India deficit at $58bn

US trade deficit widened sharply in December, with the annual goods deficit with India reaching $58.2 billion in 2025. See key data and analysis.

"The United States recorded a goods deficit of $58.2 billion with India in 2025. - U.S. Census Bureau"

Washington, Feb 21

The US trade deficit widened sharply in December, capping a year in which America's goods gap with India reached $58.2 billion.

The goods and services deficit rose to $70.3 billion in December, up from $53.0 billion in November, revised, the U.S. Census Bureau and the U.S. Bureau of Economic Analysis said this week.

Exports fell 1.7 per cent to $287.3 billion. Imports climbed 3.6 per cent to $357.6 billion.

The widening gap was driven by goods. The goods deficit increased $15.7 billion to $99.3 billion. The services surplus narrowed $1.6 billion to $29.0 billion.

In December alone, the US goods deficit with India was $5.2 billion.

For the full year 2025, the overall goods and services deficit stood at $901.5 billion, down slightly from $903.5 billion in 2024. Exports rose $199.8 billion to $3,432.3 billion. Imports increased $197.8 billion to $4,333.8 billion.

The goods deficit widened $25.5 billion to $1,240.9 billion in 2025. The services surplus increased $27.6 billion to $339.5 billion.

The United States recorded a goods deficit of $58.2 billion with India in 2025. That placed India among Washington's larger bilateral trade gaps.

By comparison, the US goods deficit stood at $218.8 billion with the European Union and $202.1 billion with China. It was $196.9 billion with Mexico, $178.2 billion with Vietnam and $146.8 billion with Taiwan.

Exports of goods fell $5.5 billion in December to $180.8 billion. Industrial supplies and materials dropped $8.7 billion. Non-monetary gold fell $7.1 billion.

Capital goods exports rose $2.5 billion. Semiconductor exports increased $0.9 billion. Consumer goods exports rose $1.8 billion, including a $1.3 billion increase in pharmaceutical preparations.

Imports of goods rose $10.2 billion to $280.2 billion in December. Capital goods imports increased $5.6 billion. Computer accessories rose $3.4 billion. Telecommunications equipment increased $1.3 billion.

Industrial supplies and materials imports rose $7.0 billion. Copper increased $1.5 billion. Crude oil imports rose $1.0 billion. Consumer goods imports fell $3.5 billion.

In real terms, the goods deficit increased $12.5 billion, or 14.8 per cent, to $97.1 billion in December.

For India, the figures reflect expanding trade ties with the United States. India has emerged as a key supplier of goods to the US market, even as Washington seeks to diversify supply chains across Asia.

Trade data are closely watched in both capitals. They shape debates over tariffs, manufacturing and strategic economic ties between the world's two largest democracies.

- IANS

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Reader Comments

P
Priya S
This is good news for job creation in sectors like pharmaceuticals, IT services, and textiles where we export. But the article hints at us mainly being a goods supplier. We need to move up the value chain. The focus should be on high-tech exports, not just volume. 🇮🇳
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Arjun K
Interesting to see our deficit is much smaller than with China or the EU. Puts things in perspective. The US is trying to reduce dependence on China, and India is benefiting. This is a strategic opportunity we must not waste. Time to strengthen those ties further!
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Sarah B
As someone who follows economics, the sheer scale of the US trade deficit is staggering. A nearly $1 trillion annual gap is unsustainable. While India's part in it is relatively small, it's still a point of friction. Hope both governments handle this diplomatically.
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Karthik V
We should not celebrate this too much. A trade surplus is good, but it also means we are importing less high-value American goods—maybe technology, machinery. We need those for our own development. The relationship should be more balanced for long-term health.
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Meera T
The data shows a rise in imports of computer accessories and telecom equipment. This could be Indian companies assembling products for re-export? The trade picture is complex. Overall, strong economic ties with the US are vital for our growth. Let's keep the momentum.

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