India recorded a merchandise trade deficit of $27.35 billion in July, the widest since the record high of deficit of $37.87 billion in November of 2024, which is set to be revised lower. Merchandise exports were at $37.24 billion in the period, expanding on comparable data from the previous month as export-oriented industries were bracing for tariffs of 25% from the United States by early August. Indian exporters could be further pressured by another 25% tariff from the US due August 27th, doubling the rate due to India's purchase and re-export of Russian energy, which would likely impact auto producers, chemicals and metals producers, and refiners. In turn, merchandise imports were at $64.59 billion.