India May Import More US Energy Amid Tariff Tensions Over Buying Russian Oil

India is seeking to increase its purchase of American oil and gas, Commerce Minister Piyush Goyal said, as the two countries resume efforts to negotiate a broader trade agreement and ease tariffs on Indian exports, according to an exclusive report by Bloomberg. 

“We expect to increase our trade with the US on energy products in the years to come,” Goyal said at an event in New York. “And being close friends, natural partners, our energy security goals will have a very high element of US involvement.”

Goyal is in the United States to meet his counterparts following President Donald Trump’s decision last month to impose a 50% tariff on certain Indian exports. The tariffs were partly intended to pressure New Delhi for continuing to purchase Russian crude, a move that disrupted decades of US-India diplomatic engagement. The announcement came amid early signs of progress after trade talks resumed.

The Trump administration has maintained that India’s import of Russian oil indirectly supports Moscow’s war efforts in Ukraine. India, as the world’s third-largest oil consumer, has relied on discounted Russian barrels to manage energy costs while keeping its import bill under control.

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Increasing imports of US oil and gas is expected to help reduce the trade imbalance between the two countries, while strengthening India’s negotiating position in ongoing trade discussions. Analysts say that deeper energy collaboration could become a key pillar of the broader US-India economic partnership, reflecting shared strategic and economic interests.

Relations between New Delhi and Washington have seen both highs and lows. The partnership appeared to gain momentum after Trump called Prime Minister Narendra Modi on his birthday, but tensions flared again with the introduction of a $100,000 fee on new H-1B visas, primarily affecting Indian tech professionals.

Goyal emphasized that the US has a crucial role to play in diversifying India’s energy security and ensuring long-term stability for the import-dependent nation. As India looks to balance global energy responsibilities with domestic needs, increased US energy imports could be a significant step toward securing its energy future.