By Manoj Kumar and Nikunj Ohri
NEW DELHI (Reuters) -India’s merchandise trade deficit hit an eight-month high of over $27 billion in July as imports surged faster than exports ahead of U.S. President Donald Trump’s announcements of new tariffs on trading partners, including India.
July exports showed no major fallout from Washington’s decision to sharply raise tariffs on a range of Indian goods, as the higher levies take effect only from August.
In April-July, shipments to the U.S. rose 21.6% to $33.53 billion from $27.57 billion a year earlier, while imports from the U.S. climbed to $17.41 billion from $15.50 billion a year ago, the government data released on Thursday showed.
Trump last week imposed an additional 25% tariff on Indian goods over New Delhi’s continued purchases of Russian oil, bringing total levies on Indian exports to 50% from August – among the highest of any U.S. trading partner. The new duties could take effect by the end of the month.
In a separate briefing, a foreign ministry spokesperson said India hoped ties with the United States would move forward based on mutual respect and shared interests.
New Delhi is committed to the substantive agenda between the two nations, the spokesperson said, adding that military equipment purchases from Washington were progressing according to established procedures.
Import shipments to the U.S. may have peaked in July after retailers raced to stock up on goods from China and elsewhere to avoid potentially hefty tariffs on holiday-related products, Reuters reported, citing logistics executives.
SURGE IN IMPORTS
Officials said India’s merchandise and services exports rose in July, led by engineering goods, electronics and gems and jewellery.
Goods exports rose to $37.24 billion in July from $35.14 billion in June, while imports jumped to $64.59 billion from $53.92 billion, partly on pre-festival demand, the data showed.
Crude oil imports 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 stood at $27.35 billion in July, higher than economists’ expectations of $20.35 billion, and against $18.78 billion in the previous month.
The trade deficit hit a record $37.8 billion in November 2024.
(Reporting by Manoj Kumar and Nikunj OhriEditing by Sonia Cheema, Christina Fincher and Frances Kerry)
