Core Insights - The report indicates that total US trade with its top partners increased to USD 257 billion during April-July 2025, up from USD 248 billion in January-March 2025 [1][10] - Despite the overall rise in trade, the US trade deficit with its top five trading partners, including India, increased by USD 9 billion during the same period [2][10] - The US trade deficit, which was over USD 150 billion in January-March 2025, has now declined to less than USD 100 billion per month [2][10] Trade Deficit Analysis - The analysis shows that the US reduced its trade deficit with China from USD 71 billion to USD 58 billion and with Switzerland from USD 54 billion to USD 1 billion [6][10] - Conversely, the trade deficit with Vietnam rose from USD 36 billion to USD 61 billion, with Mexico from USD 47 billion to USD 65 billion, with Taiwan from USD 22 billion to USD 48 billion, and with India from USD 17 billion to USD 23 billion [7][10] Trade Partner Rankings - In July 2025, Mexico became the top trading partner of the US, accounting for approximately 16% of total trade, followed by Canada at about 12.5% and China at 7.6% [8][10] - India ranked 10th among the US's trading partners, with a share of 2.7% [8][10] Conclusion on Tariffs - The report concludes that while US tariffs have helped lower overall deficit levels, the trade pattern indicates a shift in deficits from traditional partners like China and Switzerland to emerging partners such as Vietnam, Mexico, Taiwan, and India [9][10]
US trade deficit drops after Trump tariffs — but not with India and top trading partners
The Economic Times·2025-10-29 07:05