NEW DELHI— U.S. President Donald Trump has slapped a 50% tariff on Indian exports, even as India has sharply increased its purchases of American oil and gas — a move that has already helped narrow India’s trade surplus with the United States, one of the stated goals of Trump’s trade policy.
Official data shows India’s oil and gas imports from the U.S. surged 51% between January and June this year. Liquefied natural gas (LNG) imports nearly doubled to $2.46 billion in FY 2024–25, up from $1.41 billion in the previous fiscal year.
In February, Prime Minister Narendra Modi pledged to boost India’s energy imports from the U.S. to $25 billion in 2025, up from $15 billion in 2024, as part of efforts to reduce America’s trade deficit. State-owned Indian oil and gas companies have since entered talks for additional long-term supply contracts with U.S. firms. New Delhi has also emphasized its strategy to diversify energy sources and reduce dependence on Russian crude.
Indian officials note that Russian oil purchases remain within the G7’s price cap and are in line with U.S. policy, which allows such sales to keep global oil prices in check while limiting Moscow’s revenues. They also point out that the U.S. continues to import fertilizers, chemicals, uranium, and palladium from Russia.
The Indian government has underscored that the India–U.S. partnership is “multi-layered” and extends far beyond trade, grounded in shared geopolitical and strategic interests. It has also confirmed that plans remain unchanged for the sixth round of bilateral trade talks, which could pave the way for a future trade agreement. (Source: IANS)
