The United States trade deficit expanded in March, with imports surpassing exports, while the goods trade deficit with India decreased compared to the previous year. Official data from the US Census Bureau and the Bureau of Economic Analysis revealed a $60.3 billion overall goods and services deficit in March, up from February’s $57.8 billion. US exports in March reached $320.9 billion, showing a $6.2 billion increase from February, while imports rose to $381.2 billion, up by $8.7 billion.
For India, the US goods trade deficit in March was $3.8 billion on a seasonally adjusted basis, lower than the $7.4 billion deficit in March 2025. Detailed country data indicated that US exports to India were around $4.3 billion in March, with imports from India totaling approximately $8.4 billion. The report coincides with ongoing trade discussions between India and the US on various aspects like trade access, supply chains, technology cooperation, and tariffs, as part of broader efforts to enhance economic relations.
The increase in the overall US trade deficit in March was primarily driven by a rise in the goods deficit, which climbed by $4.1 billion to $88.7 billion. Additionally, the services surplus expanded by $1.6 billion to $28.4 billion. Notably, exports of industrial supplies and materials surged by $5 billion in March, mainly due to higher crude oil and petroleum product shipments, with crude oil exports alone increasing by $2.8 billion.
Imports were boosted by a surge in automotive products, consumer goods, and capital goods, with automotive vehicles, parts, and engines imports rising by $3.6 billion, and passenger car imports increasing by $2.8 billion. Moreover, imports of computer accessories rose by $2 billion, reflecting sustained demand for electronics and technology products. The data also revealed that the US goods deficit with China was $14 billion in March, while deficits with Vietnam and Taiwan remained notably higher at $19.2 billion and $20.6 billion, respectively.
India was listed among the countries where the US recorded significant trade deficits, although the gap was considerably smaller compared to China, Mexico, and Vietnam. Year-to-date, the US goods and services deficit decreased by $211.2 billion, or 55%, from the same period in 2025, with exports rising by $100.2 billion and imports falling by $111 billion. The average three-month US trade deficit for the period ending March stood at $57.6 billion, indicating some moderation despite the monthly increase.
Over the past decade, India and the United States have expanded bilateral trade, driven by sectors like pharmaceuticals, information technology services, electronics, energy, and engineering goods, with Washington being a key export destination for India. Despite this growth, trade tensions persist over issues such as tariffs, market access, digital trade rules, and supply chain localization. Both governments have recently intensified discussions to enhance economic cooperation and reduce friction in strategic sectors like semiconductors, clean energy, and advanced manufacturing.
