India's exports to US hit record high in March amid 90-day tariff pause

The US trade deficit soared to a record $140.5 billion in March, up from $123.2 billion in February as firms rush to stockpile imports before new tariff hikes take effect

India’s exports to the United States surged to a record $11.2 billion in March, crossing the $10 billion mark for the first time and marking a nearly 50 per cent increase over the 12-month average. The rise pushed total bilateral goods trade to an unprecedented $15 billion for the month, data from the United States Census Bureau showed.

 

The export surge comes amid the 90-day tariff pause announced by US President Donald Trump and as the two nations edge closer to a trade agreement.

 

The surge in March capped a strong first quarter for India–US trade. In the first three months of 2025, India exported $27.7 billion worth of goods to the US, while importing $10.5 billion, leading to a US trade deficit with India of over $17.2 billion.

 

Quarterly US-India trade breakdown

January: Exports $3.2 bn | Imports $8.1 bn | Balance -$4.9 bn

 

February: Exports $3.5 bn | Imports $8.3 bn | Balance -$4.8 bn

 

March: Exports $3.8 bn | Imports $11.2 bn | Balance -$7.4 bn

 

[Exports: US exports to India; Imports: Indian imports to the US]

 

In 2024, India–US goods trade stood at $129.2 billion, compared to $124.1 billion in 2023.  It must be noted that all data represent nominal figures and have not been seasonally adjusted. 

 

 

US imports spike in March amid tariff pause

The March spike is not isolated. It coincides with a broader surge in US imports globally, driven by firms racing to stock up on goods before new tariff hikes take effect. The US trade deficit soared to a record $140.5 billion in March, up from $123.2 billion in February, contributing to the country’s first quarterly GDP contraction in three years.

This jump followed President Donald Trump’s announcement of sweeping tariff increases, including duties of up to 145 per cent on Chinese imports. Reciprocal tariffs with most partners, including India, have been temporarily suspended for 90 days to facilitate negotiations.

 

 

US-India bilateral trade talks

India, which currently faces a suspended 26 per cent reciprocal tariff, is in the midst of active discussions with the US on a bilateral trade agreement. President Trump on Tuesday disclosed that India has proposed zero tariffs on steel, auto components and pharmaceuticals, up to specific import quotas, in a move that could pave the way for a deal. 

India is expected to become the first nation to secure a new trade deal with the US following Trump’s new trade policy.