US Tariffs Bite, Gold Imports Spike: India's Trade Deficit Swells To New High

India’s exports fell sharply in October 2025 as US tariffs and a surge in gold imports widened the trade deficit, though services and key sectors like electronics offered some cushion.

India bought substantial gold, silver and precious metals.

Source : pexels.com

The much-cautiously anticipated landfall of the tariff storm blowing from the US shores registered its impact on India’s merchandise exports in October 2025, with a double-digit contraction in exports and a spike in imports as outbound shipments fell to USD 34.38 billion last month compared to USD 38.98 billion in October 2024. India’s merchandise trade deficit widened sharply to USD 41.68 billion as imports surged by 16.6 per cent year-on-year to an all-time high of USD 76.1 billion