India, Brazil Strengthen Oil Trade Amid US Tariff Pressures

India, Brazil Strengthen Oil Trade Amid US Tariff Pressures

Amid escalating trade tensions with the United States, India and Brazil are drawing closer in the energy sector, with a particular focus on crude oil trade. Both nations have been hit by 50 per cent tariffs imposed by US President Donald Trump, who has intensified his protectionist stance by targeting major economies, including New Delhi and Brasília.

Brazil’s crude oil exports to India have surged significantly in the first half of 2025, marking the fastest growth among all India’s oil suppliers, according to data from S&P Global Commodity Insights (SPGCI). This trend has continued into the latter half of the year, as Indian refiners accelerate efforts to diversify their supply sources in response to the increasing weaponisation of trade tariffs.

“Sky-high US tariffs are prompting India and Brazil to explore opportunities to boost oil trade, as New Delhi looks for alternatives to Russian oil, while Brazil scouts for newer markets for its growing crude output… Russian oil flows to India continue, but Indian refiners are preparing for the worst by continuing to diversify their sources, a move that could lead to Brazilian crude flows to India,” SPGCI noted.

Currently ranked as India’s ninth-largest crude supplier, Brazil is positioning itself as a key alternative partner for Indian refiners, who remain wary of geopolitical risks tied to existing major suppliers like Russia. As India looks to secure stable and diversified crude inflows, Brazilian producers are eager to tap into India’s rapidly expanding energy market.

The emerging energy alignment comes at a time when both countries are seeking to strengthen South-South cooperation and reduce their vulnerability to Western trade actions. The convergence of economic and strategic interests may pave the way for long-term energy collaboration between the two nations, providing a buffer against unpredictable tariff policies from Washington.