US Trade Deficit With India Hits $54.91 Billion Over 12 Months

India accounts for 5.01% of total US goods trade deficit as imports from India generate $12.34 billion in customs duties

Apr. 3, 2026 at 5:11pm

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A minimalist, abstract illustration using bold geometric shapes and primary colors to represent the growing trade deficit between the United States and India, without any text or identifiable elements.The widening trade deficit between the US and India reflects the complex economic relationship between the two countries.Washington Today

The United States recorded a goods trade deficit of $54.91 billion with India over the past 12 months, placing it among Washington's top deficit partners even as the overall US trade gap widened in February. India also ranked among the significant sources of US imports, with goods imports from India totaling $101.97 billion over the same period.

Why it matters

The growing trade deficit with India reflects the steady trade flows between the two countries, with India playing a significant role in supplying pharmaceuticals, engineering goods, and other products to the American market. However, the trade imbalance also highlights the broader challenges the US faces in managing its trade relationships and reducing its overall trade deficit.

The details

In February alone, the US recorded a goods trade deficit of about $3.5 billion with India. Over the 12-month period through February 2026, India accounted for about 5.01 percent of the total US goods trade deficit. Imports from India generated $12.34 billion in US customs duties, with an average applied tariff rate of 12.12 percent.

  • The trade deficit data covers the 12-month period through February 2026.
  • In February 2026, the US recorded a goods trade deficit of about $3.5 billion with India.

The players

United States

The world's largest economy and a major trading partner with India.

India

A rapidly growing economy and a significant source of imports for the US, particularly in pharmaceuticals, engineering goods, and other products.

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The takeaway

The growing trade deficit with India highlights the complex economic relationship between the two countries, with India playing an increasingly important role as a supplier of goods to the US market. However, the trade imbalance also underscores the broader challenges the US faces in managing its trade relationships and reducing its overall trade deficit.