New Delhi, Sept. 15 -- India's merchandise trade deficit narrowed to $26.49 billion in August, from $27.35 billion in the previous month, according to provisional data from the commerce ministry on Monday.

Merchandise trade deficit in August was higher than economists' forecast of $25.13 billion in a Reuters poll.

Exports held up amid US tariffs that took effect in late August. Exports surged, driven by higher demand for engineering goods, electronic goods and drugs & pharma, among others.

In August, President Donald Trump announced an additional 25% tariff on Indian goods, reportedly linked to New Delhi's trade with Russia, bringing total levies on Indian exports to 50% - among the highest of any US trading partner. The new duties kic...