NEW DELHI– U.S. President Donald Trump has imposed a 50 percent tariff on Indian exports, even as India has sharply increased its purchases of American oil and gas — a move that has reduced India’s trade surplus with the United States, one of the stated goals of the Trump administration’s trade policy.
Official data shows that India’s oil and gas imports from the U.S. rose by 51 percent between January and June this year. Imports of U.S. liquefied natural gas (LNG) nearly doubled to $2.46 billion in fiscal year 2024–25, up from $1.41 billion the previous year.
In February, Prime Minister Narendra Modi pledged to raise India’s energy imports from the U.S. to $25 billion in 2025 from $15 billion in 2024, to help narrow America’s trade deficit. Following this commitment, state-owned Indian oil and gas companies entered talks with U.S. suppliers for more long-term purchase agreements. Officials in New Delhi have also emphasized efforts to diversify energy sources to reduce reliance on Russian oil.
India has defended its continued purchases of Russian crude, noting that they fall under the G7 price cap and are not subject to sanctions. U.S. policy has allowed such purchases on the grounds that additional supply helps prevent a spike in global oil prices, while discounted sales reduce Moscow’s revenue.
Indian officials have also pointed out that the U.S. continues to import Russian fertilizers, chemicals, uranium, and palladium.
Despite the tariff move, New Delhi maintains that the U.S.-India partnership is a broad, strategic relationship that extends well beyond trade. The government told the Parliamentary Standing Committee on External Affairs that plans remain unchanged for the sixth round of bilateral talks, which could pave the way for a trade agreement. (Source: IANS)
