India’s US Crude Oil Imports Surge Over 50% in H1 2025 Amid Tariff Tensions with Washington

India's energy partnership with the United States has seen a remarkable boost in the first half of 2025, with crude oil imports rising by more than 50% year-on-year. This surge is driven by growing diplomatic alignment and New Delhi’s ongoing push to diversify energy sources. However, newly announced 25% tariffs by US President Donald Trump could strain the strengthening trade ties.

US Crude Imports to India See Record Growth

According to trade data cited by ANI, India imported an average of 0.271 million barrels per day (mb/d) of US crude between January and June 2025, a significant rise from 0.18 mb/d during the same period last year.

The April–June 2025 quarter witnessed the most dramatic increase, with the value of crude imports jumping 114% year-on-year, from $1.73 billion to $3.7 billion.

In July alone, shipments from the US increased 23% compared to June, expanding the US share in India’s overall crude basket from 3% to 8%. Officials say Indian oil companies may boost US crude purchases by 150% in FY2025–26.

Broader Energy Trade Expands

The energy cooperation goes beyond oil:

• LNG (Liquefied Natural Gas) imports from the US nearly doubled, reaching $2.46 billion in FY2024–25, up from $1.41 billion the previous year.
• LPG (Liquefied Petroleum Gas) imports have also risen significantly.
• Long-term US-LNG deals worth several billion dollars are currently under negotiation.

Diplomatic Backing Strengthens Energy Ties

The Ministry of External Affairs (MEA) highlighted the growing synergy between India and the US. MEA spokesperson Randhir Jaiswal stated:

“India and the United States share a comprehensive global strategic partnership anchored in shared interests, democratic values, and robust people-to-people ties.”

Trump's Tariff Move Clouds Outlook

Despite the momentum, bilateral trade hit a rough patch after President Donald Trump announced a 25% tariff on Indian imports, accusing India of maintaining “obnoxious non-monetary trade barriers” and expressing discontent over India’s defence ties with Russia.

In a post on Truth Social, Trump warned:

• “India will face a 25% tariff, plus a penalty… I don’t care what India does with Russia. They can take their dead economies down together.”
• The White House later echoed these concerns, justifying the tariff as a response to India’s “highly protectionist” policies.
• The tariff is scheduled to go into effect on August 7, casting uncertainty over what had been a flourishing energy relationship.

Conclusion

As India's energy demand surges, reliance on US crude and gas has become a key strategic pillar. However, escalating trade frictions could stall the progress unless diplomatic efforts help bridge differences.