NEW DELHI (Reuters) – India’s merchandise trade deficit narrowed in August to $26.49 billion, from $27.35 billion in July, as exports slowed after U.S. President Donald Trump hiked import tariffs on Indian goods.
Merchandise trade deficit in August was higher than economists’ forecast of $25.13 billion in a Reuters poll.
The U.S. imposed an additional 25% tariff on Indian goods over New Delhi’s continued purchases of Russian oil starting August 27, bringing total levies on Indian exports to 50% – among the highest for any U.S. trading partner.
Total goods exports fell to $35.10 billion in August from $37.24 billion in July. Exports to the U.S. fell to $6.86 billion from $8.01 billion in July.
Total imports declined to $61.59 billion, from $64.59 billion, the data released by the commerce ministry showed.
The government estimated services exports in August at $34.06 billion and imports at $17.45 billion, suggesting a total goods and services trade deficit at $9.88 billion.
The central bank releases monthly services trade data after a lag of one month, following government estimates.
(Reporting by Manoj Kumar in New Delhi; Writing by Shubham Batra; Editing by Eileen Soreng)
