The US trade deficit widened sharply in December, capping a year in which America’s goods gap with India reached $58.2 billion.

The goods and services deficit rose to $70.3 billion in December, up from $53.0 billion in November, revised, the U.S. Census Bureau and the U.S. Bureau of Economic Analysis said this week.

Exports fell 1.7 per cent to $287.3 billion. Imports climbed 3.6 per cent to $357.6 billion.

The widening gap was driven by goods. The goods deficit increased $15.7 billion to $99.3 billion. The services surplus narrowed $1.6 billion to $29.0 billion.

In December alone, the US goods deficit with India was $5.2 billion.

For the full year 2025, the overall goods and services deficit stood at $901.5 billion, down slightly from $903.5 billion in 2024. Exports rose $199.8 billion to $3,432.3 billion. Imports increased $197.8 billion to $4,333.8 billion.

The goods deficit widened $25.5 billion to $1,240.9 billion in 2025. The services surplus increased $27.6 billion to $339.5 billion.

The United States recorded a goods deficit of $58.2 billion with India in 2025. That placed India among Washington’s larger bilateral trade gaps.

By comparison, the US goods deficit stood at $218.8 billion with the European Union and $202.1 billion with China. It was $196.9 billion with Mexico, $178.2 billion with Vietnam and $146.8 billion with Taiwan.

Exports of goods fell $5.5 billion in December to $180.8 billion. Industrial supplies and materials dropped $8.7 billion. Non-monetary gold fell $7.1 billion.

Capital goods exports rose $2.5 billion. Semiconductor exports increased $0.9 billion. Consumer goods exports rose $1.8 billion, including a $1.3 billion increase in pharmaceutical preparations.

Imports of goods rose $10.2 billion to $280.2 billion in December. Capital goods imports increased $5.6 billion. Computer accessories rose $3.4 billion. Telecommunications equipment increased $1.3 billion.

Industrial supplies and materials imports rose $7.0 billion. Copper increased $1.5 billion. Crude oil imports rose $1.0 billion. Consumer goods imports fell $3.5 billion.

In real terms, the goods deficit increased $12.5 billion, or 14.8 per cent, to $97.1 billion in December.

For India, the figures reflect expanding trade ties with the United States. India has emerged as a key supplier of goods to the US market, even as Washington seeks to diversify supply chains across Asia.

Trade data are closely watched in both capitals. They shape debates over tariffs, manufacturing and strategic economic ties between the world’s two largest democracies.