The White House on Thursday said a series of fresh trade agreements, including one with India, has helped narrow the United States’ trade deficit under President Donald Trump’s tariff-driven approach.
A year after the administration rolled out its aggressive trade reset, branded as “Liberation Day”, officials claim the policy has started altering global trade patterns. The White House argues the strategy has strengthened domestic manufacturing while pushing trading partners to renegotiate terms.
White House spokesperson Kush Desai said: “One year ago today, President Trump threw away the illusions of ‘free trade’ to finally put Americans and America First.”
“The results since Liberation Day have been astonishing: over 20 new trade deals, trillions in manufacturing investments, lower drug prices, and lower goods trade deficits,” added Desai.
“And this is just the beginning of the President’s transformation of global trade: as these investment and trade deals continue taking effect, and more get signed, Americans can count on the best being yet to come.”
According to official data, the US goods trade deficit dropped by 24 per cent between April 2025 and February 2026 compared to the previous year. Officials said the gap has consistently declined on a year-on-year basis since the policy changes were introduced.
Trade balances improved with over 60 per cent of US partners, with the deficit with China shrinking significantly. The White House also noted a sharp reduction in the trade gap with the European Union, alongside a rare goods surplus with Switzerland.
The administration said several new agreements with economies, including India, Vietnam, Japan, and Argentina, now cover a large share of global output. These deals are aimed at easing non-tariff barriers and expanding access for US goods.
“Trillions in private and foreign investments are fueling a historic reshoring of American industry, bringing jobs, production, and supply chains back home,” the statement said.
Officials say there are early signs that the domestic industry is picking up again. After a long lull, manufacturing activity began to recover in early 2026, while overall industrial output has climbed to levels last seen in 2019. The US also moved ahead of Japan in steel production last year, making it the world’s third-largest producer.
The White House has also pointed to better wages. It says private sector workers have seen a real rise in incomes over the past year, especially in sectors such as construction and manufacturing.
“These strong results prove that President Trump’s America First trade policies are making our country wealthy, strong, and respected once again,” the statement said.
India still among top US deficit partners
Even as the overall trade gap shows signs of easing, India continues to remain one of the countries where the US runs a significant deficit.
Latest data shows the US had a goods trade deficit of $54.91 billion with India in the 12 months ending February 2026. This made up roughly 5 per cent of America’s total goods trade deficit.
In February alone, the gap stood at around $3.5 billion.
India is still a big source of goods for the US, with imports from the country crossing $100 billion over the past year. These include key sectors such as pharmaceuticals, engineering goods, and other industrial products.
Imports from India brought in more than $12 billion in customs duties, with average tariffs slightly above 12 per cent.
At the same time, the overall US trade deficit inched up to $57.35 billion in February, mainly because imports rose faster than exports. The gap in goods trade stayed wide, though services continued to bring in a surplus.
What’s driving this? A steady demand for capital goods, electronics, crude oil and medicines pushed imports higher. On the export side, gains came from increased shipments of industrial materials and energy.
Trade policy remains at the heart of the Trump administration’s economic strategy. The focus is on using tariffs to cut dependence on imports and push more production back home.