US Records $6.2 Billion Trade Deficit With India In August

WASHINGTON, DC- The United States recorded a $6.2 billion goods trade deficit with India in August, according to official data released October 6, as America’s overall trade deficit widened sharply during the month amid a surge in imports.

India’s deficit was among the larger merchandise trade gaps recorded by the US with major trading partners in August, according to data from the US Census Bureau and the Bureau of Economic Analysis.

The figures come as trade remains a key issue in India-US economic relations, with Washington seeking to reduce its deficits with major trading partners.

The $6.2 billion figure covers trade in goods and is calculated on a Census basis. The monthly country figures released by the agencies do not represent the broader bilateral balance, which also includes services.

India’s August deficit was the same as Germany’s and smaller than the US deficits with Mexico, Vietnam, Taiwan, China, the European Union, South Korea and Canada.

The largest US goods deficit was with Mexico at $27.7 billion, followed by Vietnam at $24 billion, Taiwan at $18.3 billion and China at $16.4 billion.

The US deficit with the European Union stood at $11 billion, while South Korea accounted for $9.4 billion and Canada $7.1 billion.

Malaysia followed India and Germany with a $6 billion deficit, while the US deficit with Italy was $4.3 billion and with Japan $3.7 billion.

The India figure came as America’s overall goods and services deficit rose to $105.6 billion in August, up $12.7 billion, or 13.7 per cent, from a revised $92.8 billion in July.

US exports rose by $4.5 billion to $315.2 billion, while imports increased by $17.2 billion to $420.8 billion.

The increase in the overall deficit was driven largely by a $12.8 billion rise in the goods deficit, which reached $136.6 billion. The United States continued to record a substantial surplus in services, which edged up by less than $100 million to $31 billion.

Goods exports increased by $4.4 billion to $205.7 billion in August, while goods imports rose by $17.2 billion to $342.2 billion.

Imports of industrial supplies and materials accounted for a $9.1 billion increase, while imports of capital goods rose by $6.2 billion.

Despite the sharp monthly increase, the US trade deficit for the first eight months of 2026 remained substantially below its level during the corresponding period last year.

The goods and services deficit fell by $138.2 billion, or 19.9 per cent, year-to-date compared with the same period in 2025. US exports increased by $267.7 billion, or 11.8 per cent, while imports rose by $129.5 billion, or 4.4 per cent. (IANS)