US goods deficit with India reaches $58 billion in 2025

The US trade deficit expanded in December as imports grew faster than exports, according to data released by the U.S. Census Bureau and the US Bureau of Economic Analysis.

The overall goods and services deficit rose to $70.3 billion in December, up from $53 billion in November. Exports declined 1.7% to $287.3 billion, while imports increased 3.6% to $357.6 billion.

Trade deficit with India and other partners

The United States recorded a goods deficit of $58.2 billion with India in 2025, placing India among Washington’s larger bilateral trade gap partners.

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

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

Goods exports fell by $5.5 billion in December to $180.8 billion, mainly due to declines in industrial supplies, materials and non-monetary gold.

However, exports of capital goods, semiconductors and pharmaceutical preparations showed modest growth.

Goods imports rose by $10.2 billion to $280.2 billion. Increases were seen in capital goods, computer accessories, telecommunications equipment, copper and crude oil.

Consumer goods imports fell by $3.5 billion, partly offsetting overall import growth.

Annual trade outlook

For 2025, the US recorded a total trade deficit of $901.5 billion, slightly lower than the $903.5 billion deficit in 2024.

While goods deficit widened to $1,240.9 billion, the services surplus improved to $339.5 billion.

Trade data remain politically and economically significant as the US continues efforts to manage supply chains and balance global trade relationships, including with India.

The figures highlight strengthening India–US trade ties even as policy discussions around tariffs and manufacturing continue in both countries.
(With IANS inputs)