In a development that has surprised many global observers, India has dramatically increased its imports of crude oil from the United States — despite ongoing trade tensions and a newly imposed 25% tariff announced by U.S. President Donald Trump. Between April and June 2025 alone, India’s crude oil imports from the U.S. surged by a staggering 114% year-over-year. This sharp rise isn’t a short-term blip but part of a broader trend visible since early 2025.
According to official data, India imported an average of 0.271 million barrels per day of U.S. crude between January and June 25, 2025. In comparison, the same period in 2024 saw imports of just 0.18 million barrels per day — a jump of over 50%. In financial terms, this translated into a rise in the value of crude oil imports from $1.73 billion to $3.7 billion. In July 2025 alone, India imported over 23% more crude from the U.S. compared to June, pushing America’s share in India’s total crude imports from just over 3% to around 8%.
But this isn't just about crude oil. India’s imports of liquefied natural gas (LNG) from the U.S. have also nearly doubled. From $1.41 billion in FY 2023-24, LNG imports climbed to $2.46 billion in FY 2024-25. The imports of liquefied petroleum gas (LPG) are also rising steadily, signaling a long-term trend. Talks are reportedly underway between the two countries for a multi-billion-dollar long-term LNG supply agreement — another indication that India is deepening America's presence in its energy portfolio.
This energy shift comes at a time of heightened geopolitical tension. On August 1, 2025, President Trump signed an executive order to impose a 25% tariff on Indian goods, originally set to be implemented on August 1 but later postponed to August 7. The White House cited India’s so-called “obnoxious non-monetary trade barriers,” a persistent trade imbalance, and India’s deepening energy and defense partnerships with Russia as justifications for the tariff move.
Trump’s remarks stirred further controversy when he reportedly said, “I don’t care what India does with Russia. They can take their dead economies down together,” referring to India and Russia’s strategic closeness. However, India’s Ministry of External Affairs responded calmly and diplomatically, emphasizing that “India and the United States share a comprehensive global strategic partnership” and that this partnership “has weathered several transitions and challenges.”
Despite these tensions, India’s growing U.S. energy imports point to a larger strategy: diversification. India continues to buy discounted oil from Russia while expanding its energy trade with the U.S. and maintaining significant imports from the Middle East. This multifaceted energy approach enhances India's bargaining power on the global stage. It also reduces dependency on any single source, giving India strategic flexibility in navigating turbulent geopolitical waters.
For the U.S., this trend represents a crucial opportunity. With deteriorating relations with China, India offers Washington an alternate massive energy market in the Indo-Pacific region. Energy exports — particularly LNG — are not only commercial opportunities but also tools of long-term strategic alignment.
What India is signaling to the world is two-fold. First, the country no longer binds itself to one geopolitical camp. Instead, it deals pragmatically with multiple powers in a multipolar world. Second, energy is no longer merely a commodity — it’s a strategic asset. And India is increasingly using this asset to secure its economic and diplomatic interests.
The real twist in this story is the timing. Just as Trump announced steep tariffs and criticized India’s ties with Russia, India deepened its energy dependence on the U.S. This could either indicate a calculated Indian move to show neutrality and strategic autonomy — or an American attempt to entrench India into its energy ecosystem despite political rifts.
In conclusion, energy has become more than just a fuel source; it’s now a foreign policy tool. The rise in U.S.-India energy trade reflects a complicated but dynamic relationship — one that balances on the edge of cooperation and confrontation. Whether this strategic oil diplomacy strengthens bilateral ties or gets consumed in the fire of trade wars will be decided in the months ahead.
