US records $6.2 billion goods trade deficit with India in August

The United States recorded a $6.2 billion goods trade deficit with India in August, while its overall trade gap widened to $105.6 billion. Imports rose sharply during the month, pushing the deficit higher despite an increase in exports

Washington: The United States recorded a $6.2 billion goods trade deficit with India in August, according to official data released Tuesday, as America’s overall trade deficit widened sharply during the month on a surge in imports.

The India deficit placed the country among the major economies with which the United States ran a merchandise trade gap in August, according to the US Census Bureau and the Bureau of Economic Analysis.

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

The $6.2 billion figure relates to 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 covering both goods and services.

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

The largest US goods deficit among the countries and regions listed 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 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 U.S. deficit with Italy was $4.3 billion and with Japan $3.7 billion.

The United States, meanwhile, recorded goods trade surpluses with several major partners and regions, including the Netherlands at $7.7 billion, South and Central America at $5.6 billion, the United Kingdom at $3.6 billion and Hong Kong at $2.3 billion.

The India number was released as part of data showing a substantial deterioration in America’s overall trade balance in August.

The US goods and services deficit rose to $105.6 billion, an increase of $12.7 billion, or 13.7 per cent, from a revised $92.8 billion in July.

Exports rose by $4.5 billion to $315.2 billion, while imports climbed much faster, increasing by $17.2 billion to $420.8 billion.

The widening of the overall deficit reflected a $12.8 billion increase in the goods deficit, which reached $136.6 billion. The United States continued to run 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. The increase was driven in part by industrial supplies and materials, including nonmonetary gold, crude oil and fuel oil.

Capital goods exports also increased, with shipments of semiconductors, computers and computer accessories rising during the month. Pharmaceutical exports, however, fell by $2.4 billion.

Goods imports increased by $17.2 billion to $342.2 billion. Industrial supplies and materials accounted for a $9.1 billion increase, including higher imports of crude oil and nonmonetary gold.

Imports of capital goods rose by $6.2 billion, with semiconductor imports increasing by $2.4 billion.

Despite the sharp monthly increase, the U.S. 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. U.S. exports increased by $267.7 billion, or 11.8 per cent, while imports rose by $129.5 billion, or 4.4 per cent.