India adds to us concerns, trade deficit hits massive $54.91 billion

Washington (The Uttam Hindu): According to government data, the United States has suffered a trade deficit of $54.91 billion with India over the past 12 months. This significant deficit has placed India among the countries with which the United States has the largest trade deficit. Meanwhile, the United States' overall trade deficit with other countries around the world also increased further in February.

Data for the month showed that the US trade deficit widened to $57.35 billion in February, up $2.67 billion from January, though it was still 11 percent below the 12-month average.

This increase occurred because imports grew faster than exports. Total exports during the month amounted to $314.8 billion, while imports reached $372.1 billion.

The US experienced a trade deficit of $84.60 billion in goods, while a services surplus of $27.26 billion was recorded. The goods trade deficit increased compared to January, while the services surplus decreased.

India remains one of the United States' major trading partners. In February alone, the United States recorded a merchandise trade deficit of nearly $3.5 billion with India.

In the 12-month period ending February 2026, India accounted for about 5.01 per cent of the total goods trade deficit with the US, reflecting the consistent trade flow between the two countries.

India was also a major source of US imports. During the same period, India's total imports amounted to $101.97 billion, reflecting its role in supplying pharmaceuticals, engineering goods, and other products to the US market.

Meanwhile, imports from India brought in US customs duty of $12.34 billion, with an average tariff rate of 12.12 percent.

The US's overall trade outlook continued to see large imbalances with Mexico, Vietnam, and China, which remained the largest contributors to the goods trade deficit.

Exports rose in February, driven by higher shipments of industrial supplies and materials, including non-monetary gold and natural gas. Services exports also rose slightly.

However, imports grew faster due to demand for capital goods, computers, semiconductors, crude oil and pharmaceutical preparations.

Among goods traded last year, civilian aircraft, pharmaceutical products and non-monetary gold were the main US exports. Imports were dominated by pharmaceuticals, computers and passenger vehicles.

Despite the monthly increase, the long-term trend suggests some narrowing of the trade imbalance. Year-over-year data shows that the deficit has narrowed compared to the same time last year, with exports increasing and imports decreasing on an annual basis.

In February, the United States collected $21.24 billion in import duties, about 13 percent below the 12-month average. The average applicable duty rate was 8.48 percent.