Indian trade deficit reached the highest eight months in July before the US tariff increase

Indian merchandise trade deficit reached the highest eight months than $ 27 billion in July because imports jumped faster than exports ahead of the announcement of the new tariff of US President Donald Trump on trading partners, including India.

July exports did not show a major impact of Washington’s decision to raise the tariffs of Indian goods sharply, because higher levies were only valid since August.

In April-July, shipping to the US rose 21.6% to $ 33.53 billion from $ 27.57 billion in the previous year, while imports from the US rose to $ 17.41 billion from $ 15.50 billion last year, government data released on Thursday showed.

Trump last week imposed an additional 25% tariff on Indian goods for the purchase of a sustainable New Delhi Russian oil, so that the total levy on Indian exports was 50% from August – among the highest of each US trading partner. New tasks can apply at the end of the month.

In a separate briefing, a spokesman for the Ministry of Foreign Affairs said India hoped that relations with the United States would move forward based on mutual respect and common interests.

New Delhi is committed to the substantive agenda between the two countries, said the spokesman, added that the purchase of military equipment from Washington was progressing in accordance with the stipulated procedures.

Import delivery to the US may have peaked in July after the retailer is racing to store items from China and elsewhere to avoid potential rates on products related to holidays, reporting Reuters, quoting the executive of logistics.

Import surge

Officials said the exports of Indian merchandise and services increased in July, led by technical, electronic and jewelry and jewelry goods.

The export of goods rose to $ 37.24 billion in July from $ 35.14 billion in June, while imports jumped to $ 64.59 billion from $ 53.92 billion, in part in pre-festival requests, data showed.
Imports of crude oil rose to $ 15.5 billion in July from $ 13.7 billion in June, while gold imports rose to $ 3.9 billion from $ 1.8 billion in the previous month.

The trade deficit reached $ 27.35 billion in July, higher than economic expectations of $ 20.35 billion, and against $ 18.78 billion in the previous month.

The trade deficit reached a record of $ 37.8 billion in November 2024.
Source: Reuters