India Deepens U.S. Energy Ties with 51% Crude Oil Import Surge Amid Tariff Strains

India’s energy trade with the United States has entered a new phase, marked by a dramatic 51% surge in crude oil imports between January and June 2025. This shift coincides with President Donald Trump’s return to office and his recent imposition of a 25% tariff on Indian goods.

Despite the tariff escalation, Indian refiners have ramped up purchases of American crude, signaling a strategic pivot in energy sourcing. The April–June quarter alone saw a 114% year-on-year jump in volumes, with imports rising from 0.18 million barrels per day (mb/d) to 0.271 mb/d.

In monetary terms, the value of U.S. crude imports more than doubled—from $1.73 billion in Q1 FY24–25 to $3.7 billion in Q1 FY25–26. July 2025 continued the trend, with a 23% increase over June, pushing the U.S. share in India’s crude basket from 3% to 8%.

This surge is not limited to crude oil. Imports of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from the U.S. have also soared. LNG imports nearly doubled to $2.46 billion in FY25, and discussions are underway for a long-term LNG deal potentially worth tens of billions.

Indian officials have emphasized that this diversification does not signal a retreat from Russian energy ties. While Trump has criticized India’s Russian oil purchases, New Delhi maintains its multi-source strategy, balancing geopolitical pressures with energy security.

The Ministry of External Affairs reaffirmed the strength of India-U.S. relations, citing shared democratic values and strategic interests. The energy partnership, officials say, is a cornerstone of this evolving bilateral equation.

Industry insiders expect the momentum to continue, with projections indicating a 150% rise in U.S. crude imports by the end of FY25–26. This expansion reflects both economic pragmatism and a recalibration of India’s global energy alliances.

As trade tensions simmer, India’s energy diplomacy appears focused on resilience, diversification, and long-term stability.