Despite US President Donald Trump imposing tariffs as high as 50 percent on Indian exports, America’s trade deficit with India is set to increase to $58.2 billion by 2025. Earlier it was close to $45.7 billion. The US government gave this information on Saturday amid the growing stir on tariffs. Let us tell you that America’s total trade deficit (goods and services) in December 2025 was $ 70.3 billion, which was $ 53 billion in November. Whereas, the trade deficit with India in December was $ 5.2 billion. The total US trade deficit for the full year 2025 was $901.5 billion, while in 2024 it was $903.5 billion. During this period, American exports increased by $ 199.8 billion to $ 3,432.3 billion and imports increased by $ 197.8 billion to $ 4,333.8 billion.
Now understand the difference between goods and services
The deficit in merchandise trade increased by $25.5 billion to $1,240.9 billion. At the same time, the surplus in services increased by $ 27.6 billion to $ 339.5 billion. America’s trade deficit with other countries in 2025 will be as follows-
European Union: $218.8 billion
China: $202.1 billion
Mexico: $196.9 billion
Vietnam: $178.2 billion
Taiwan: $146.8 billion
Supreme Court canceled American tariff
Let us tell you that this whole matter came to light when the US Supreme Court canceled the tariffs imposed by Trump, calling them illegal. But soon after, Trump used Section 122 to impose a 10 percent temporary tariff on goods imported into the US for 150 days. This tariff will be applicable from 24th February. According to a White House fact sheet, under Section 122 of the Trade Act of 1974, the President can impose surcharges and other import restrictions to reduce certain fundamental international payments problems (such as the trade deficit).
Understand which items will not be subject to tariff
According to the fact sheet released by the White House, this tariff will not be applicable on some essential and important items. These include-
Minerals and metals used in bullion
energy and energy products
Natural Resources and Fertilizers
agricultural products
Pharmaceuticals and related materials
some electronics and passenger vehicles
