US trade gap widens; India among key partners

India remained among the United States’ key trading partners in November as the US trade deficit widened sharply, due to higher imports and a decline in exports, according to official data released on Thursday.

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis said the U.S. goods and services trade deficit rose to $56.8 billion in November, nearly double the revised $29.2 billion recorded in October.

A trade deficit occurs when a country imports more goods and services than it exports.

During the month, the United States recorded a goods trade deficit of $4.4 billion with India, placing it among the countries with which Washington ran notable trade gaps.

Overall, U.S. exports fell to $292.1 billion in November, while imports rose to $348.9 billion, pushing the deficit higher. Officials said the increase was largely driven by goods trade, even as the U.S. continued to post a surplus in services.

In November, the United States ran its largest goods trade deficits with Mexico at $17.8 billion, followed by Vietnam ($16.2 billion), Taiwan ($15.6 billion), China ($14.7 billion), and the European Union ($14.5 billion). Among major economies, the deficit with Germany stood at $7.4 billion, while in Asia it reached $4.7 billion with Japan and $4.4 billion with India. The top ten was rounded out by South Korea at $3.7 billion and France at $3.6 billion.

At the same time, the United States recorded goods trade surpluses — where exports exceeded imports — with several partners. The largest surpluses were with Switzerland at $7.8 billion, Netherlands at $5.6 billion, South and Central America at $5.1 billion, and the United Kingdom at $4.2 billion. Smaller surpluses were recorded with Hong Kong, Brazil, Australia, Belgium, and Saudi Arabia.

According to the report, exports of goods declined in November, mainly because of lower shipments of industrial supplies, precious metals, crude oil, and consumer goods, including pharmaceuticals. Exports of services edged up slightly, supported by travel, intellectual property charges, and business services, the November report said.

Further, the report said, consumer goods imports increased sharply, including pharmaceuticals, while capital goods imports also climbed, led by computers and semiconductors. Imports of services dipped slightly, mainly due to lower travel-related spending.

On a year-to-date basis, covering the period from January through November, the U.S. goods and services trade deficit increased by $32.9 billion, or 4.1 percent, compared with the same period last year. Over the same period, both exports and imports grew, though imports rose faster.

The next U.S. trade report, covering December and full-year data for 2025, is scheduled for release on February 19, 2026.

India and the United States have steadily expanded trade ties in recent years, spanning goods such as pharmaceuticals and industrial products as well as services including information technology and business outsourcing.

U.S. trade data are closely followed in India as they offer signals on export demand, world economic conditions, and trends in one of India’s most important overseas markets.

Picture Courtesy: IANS