U.S. Trade Gap Narrows in April; Deficit With India Remains Relatively Small
Washington — The U.S. trade deficit edged lower in April as stronger exports helped offset another rise in imports, while the country’s goods deficit with India remained modest compared with several major trading partners in Asia and North America.
Data released Tuesday by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis showed the overall goods and services deficit fell to $55.9 billion in April from a revised $56.6 billion in March.
Exports rose $8.3 billion during the month to $327.1 billion. Imports also increased, climbing $7.6 billion to $383 billion.
The figures showed that India accounted for a $2.4 billion U.S. goods trade deficit in April, far below the gaps recorded with Taiwan and Vietnam, both at $19.3 billion, Mexico at $14.8 billion, China at $12 billion, Germany at $5.6 billion and South Korea at $4.7 billion.
India’s monthly deficit was closer to the U.S. gaps with France and Italy and remained smaller than those with several larger manufacturing exporters.
On a goods-and-services basis, which is reported quarterly with a one-month delay, the U.S. deficit with India stood at $11.1 billion in the first quarter of 2026. That was well below the first-quarter deficits with Taiwan, Vietnam, Mexico, China, South Korea and Germany.
The data suggests that although India is a growing trade partner for the United States, it is not among the biggest contributors to Washington’s bilateral trade imbalances. The April goods deficit with India was roughly one-fifth of the U.S. goods gap with China and much smaller than the gaps with Taiwan and Vietnam.
The improvement in the overall trade balance was driven largely by goods exports, which increased $8.7 billion to $221.3 billion. Capital goods exports rose $4 billion, including a $2.5 billion increase in computer exports.
Industrial supplies and materials also posted gains, rising $2.5 billion, helped by a sharp increase in crude oil exports. Consumer goods exports rose $1.7 billion.
Services exports slipped slightly to $105.8 billion, with declines in travel, transport and maintenance and repair services.
Imports continued to rise in April, led by capital goods. Goods imports increased $6.4 billion to $304.9 billion, including higher imports of computers, semiconductors and telecommunications equipment. Services imports rose $1.3 billion to $78 billion.
The government report said the overall deficit narrowed because the goods deficit declined by $2.4 billion to $83.7 billion, even as the U.S. services surplus fell by $1.7 billion to $27.8 billion.
For the year to date, the U.S. goods and services deficit was down $213.5 billion, or 49.1 percent, from the same period in 2025.
The trade figures come as India and the United States continue efforts to expand economic ties through a proposed bilateral trade agreement and cooperation in technology, energy, supply chains and advanced manufacturing. Trade has become an increasingly important part of the broader strategic partnership between the two countries. (Source: IANS)
