Washington, February 21 – The US trade deficit widened sharply in December, capping a year in which America's trade gap with India reached $58.2 billion.
The trade deficit in goods and services rose to $70.3 billion in December, up from $53.0 billion in November, according to the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, which announced this week.
Exports fell 1.7 per cent to $287.3 billion. Imports climbed 3.6 per cent to $357.6 billion.
The widening gap was driven by goods. The trade deficit increased by $15.7 billion to $99.3 billion. The surplus in services narrowed by $1.6 billion to $29.0 billion.
In December alone, the US trade deficit with India was $5.2 billion.
For the full year 2025, the overall trade deficit stood at $901.5 billion, down slightly from $903.5 billion in 2024. Exports rose by $199.8 billion to $3,432.3 billion. Imports increased by $197.8 billion to $4,333.8 billion.
The trade deficit widened by $25.5 billion to $1,240.9 billion in 2025. The surplus in services increased by $27.6 billion to $339.5 billion.
The United States recorded a trade deficit of $58.2 billion with India in 2025. This placed India among Washington's largest bilateral trade deficits.
In comparison, the US trade deficit stood at $218.8 billion with the European Union and $202.1 billion with China. It was $196.9 billion with Mexico, $178.2 billion with Vietnam, and $146.8 billion with Taiwan.
Exports of goods fell by $5.5 billion in December to $180.8 billion. Industrial supplies and materials dropped by $8.7 billion. Non-monetary gold fell by $7.1 billion.
Capital goods exports rose by $2.5 billion. Semiconductor exports increased by $0.9 billion. Consumer goods exports rose by $1.8 billion, including a $1.3 billion increase in pharmaceutical preparations.
Imports of goods rose by $10.2 billion to $280.2 billion in December. Capital goods imports increased by $5.6 billion. Computer accessories rose by $3.4 billion. Telecommunications equipment increased by $1.3 billion.
Industrial supplies and materials imports rose by $7.0 billion. Copper increased by $1.5 billion. Crude oil imports rose by $1.0 billion. Consumer goods imports fell by $3.5 billion.
In real terms, the trade deficit increased by $12.5 billion, or 14.8 per cent, to $97.1 billion in December.
For India, the figures reflect expanding trade ties with the United States. India has emerged as a key supplier of goods to the US market, even as Washington seeks to diversify supply chains across Asia.
Trade data are closely watched in both capitals. They shape debates over tariffs, manufacturing, and strategic economic ties between the world's two largest democracies.
