The United States trade deficit narrowed to $55.9 billion in April 2026, down from a revised $56.6 billion in March, as exports outpaced imports, according to data released on Tuesday, 9 June by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis. Notably, the bilateral goods trade gap between the US and India stood at a relatively modest $2.4 billion for the month — roughly one-fifth of the deficit Washington recorded with China.

Where India Stands Among US Trading Partners

The $2.4 billion US goods trade deficit with India in April placed it well below the deficits 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 bilateral gap was broadly comparable to those of France and Italy, according to official data.

On a broader goods-and-services basis — available quarterly with a one-month lag — the US trade deficit with India stood at $11.1 billion in the first quarter of 2026. That ranked behind Taiwan ($59.1 billion), Vietnam ($54.2 billion), Mexico ($43.1 billion), China ($30.4 billion), South Korea ($15.7 billion), and Germany ($14 billion). The figures suggest India is not among the primary contributors to Washington's largest bilateral trade imbalances.

What Drove the Overall US Trade Improvement

Total US exports rose $8.3 billion to $327.1 billion in April, while imports increased $7.6 billion to $383 billion. Goods exports climbed $8.7 billion to $221.3 billion, led by capital goods, which surged $4 billion — including a $2.5 billion rise in computer exports. Industrial supplies and materials added $2.5 billion, boosted by a $6.4 billion jump in crude oil exports. Consumer goods exports rose by $1.7 billion.

Services exports, however, slipped $0.4 billion to $105.8 billion, with travel services declining $0.3 billion and transport as well as maintenance services each falling $0.2 billion.

Import Composition and Goods Deficit

Goods imports increased $6.4 billion to $304.9 billion, with capital goods accounting for much of the gain, rising $7 billion. Within that, computer imports rose $2.2 billion, semiconductors by $1.7 billion, and telecommunications equipment by $1.6 billion. Services imports rose $1.3 billion to $78 billion.

Overall, the goods deficit narrowed by $2.4 billion to $83.7 billion, though this was partly offset by a $1.7 billion decline in the US services surplus to $27.8 billion. Year-to-date, the US goods and services deficit has fallen by $213.5 billion, or 49.1%, compared with the same period in 2025.

India-US Trade Ties in Focus

This comes amid active negotiations between India and the United States on a proposed bilateral trade agreement, with both sides also deepening cooperation in technology, supply chains, energy, and advanced manufacturing. Trade has emerged as a central pillar of the strategic partnership, alongside defence and critical technologies. The relatively contained bilateral deficit could strengthen India's negotiating position as both countries work toward formalising a trade framework.