This significant deficit has positioned India among the countries with which the U.S. experiences the highest trade losses. In February, the overall trade deficit with other countries also increased.

Data from the month revealed that the U.S. trade deficit rose to $57.35 billion in February, an increase of $2.67 billion from January, although it remains 11% lower than the 12-month average.

This increase is attributed to imports growing at a faster pace than exports. During the month, total exports amounted to $314.8 billion, while imports surged to $372.1 billion.

In goods trade, the U.S. faced a deficit of $84.60 billion, while a surplus of $27.26 billion was recorded in the services sector. The goods trade deficit widened compared to January, whereas the services surplus decreased.

India remains a key trading partner for the U.S., with a goods trade deficit of approximately $3.5 billion recorded in February alone.

Over the 12-month period ending February 2026, India’s share of the total goods trade deficit with the U.S. was about 5.01%, indicating a consistent trade flow between the two nations.

India was also a major source of U.S. imports. During this period, the U.S. imported goods worth $101.97 billion from India, highlighting its role in supplying pharmaceuticals, engineering goods, and other products to the American market.

From these imports, U.S. customs duties collected amounted to $12.34 billion, with an average tariff rate of 12.12%.

The overall trade landscape for the U.S. shows significant imbalances with Mexico, Vietnam, and China, which remain the top contributors to the goods trade deficit.

In February, exports increased due to higher shipments of industrial supplies and materials, including non-monetary gold and natural gas. Service exports also saw a slight uptick.

However, demand for capital goods, computers, semiconductors, crude oil, and pharmaceutical preparations led to a more rapid increase in imports.

Among the goods traded last year, civilian aircraft, pharmaceutical products, and non-monetary gold were the main exports from the U.S. In terms of imports, pharmaceuticals, computers, and passenger vehicles dominated.

Despite the increase in trade for the month, long-term trends indicate a slight reduction in trade imbalances. Year-over-year data shows that the deficit has decreased compared to the same time last year, with exports rising and imports declining annually.

In February, the U.S. collected $21.24 billion in import duties, which is approximately 13% lower than the 12-month average. The average applied duty rate was 8.48%.