White House trade adviser Peter Navarro has intensified his attack on India’s oil policy, saying New Delhi is fuelling Russia’s war in Ukraine. Speaking to Bloomberg Television, he declared, “India is helping feed the Russian war machine. I mean Modi’s war, because the road to peace runs, in part, through New Delhi.”
He accused India of profiting at the expense of American consumers by purchasing discounted Russian crude. Linking tariffs directly to energy policy, he said, “It’s real easy. India can get 25 per cent off tomorrow if it stops buying Russian oil and helps to feed the war machine.”
Navarro also criticised India’s response to US objections. “What’s troubling to me is that the Indians are so arrogant about this. They say, ‘Oh, it’s our sovereignty. We can buy oil from anyone we want.’ India, you’re the biggest democracy in the world, OK? Act like one. Side with the democracies," he said in the interview.
His statements follow the US's imposition of a 50% tariff on Indian goods on Wednesday, due to its continued purchases of Russian oil. The additional 25% tariff imposed by the US on Indian goods brings the total tariff to 50%. India has criticised the move, calling it "unjustified and unreasonable."
Here's what some other members of Donald Trump's administration have said over the past few weeks regarding India's use of Russian oil imports.
Trump Tariffs: From tariffs to accusations
The remarks followed US President Donald Trump’s announcement of an additional 25 per cent duty on Indian goods on 6 August, raising the total tariff to 50 per cent. Navarro had earlier called India the “maharaja of tariffs” and described its refiners as a “laundromat for the Kremlin”.
In another interview conducted with PBS News, a week ago, he argued, “India doesn’t appear to want to recognise its role in the bloodshed… They don’t need the oil. It’s a refining profiteering scheme. I love India. Modi is a great leader, but please, India, look at your role in the global economy.”
US Treasury Secy joins the criticism
Earlier this month, US Treasury Secretary Scott Bessent had also criticised India’s imports. Speaking to CNBC, he said, “They are just profiteering. They are reselling. This is what I would call the Indian arbitrage — buying cheap Russian oil, reselling it as product. They’ve made $16 billion in excess profits — some of the richest families in India.”
Yesterday, Bessent told Fox Business that despite the disputes, ties between leaders remain intact. “I do think India is the world’s largest democracy and the US is the world’s largest economy.”
Trump’s 50% tariff threat
On 31st July, Trump had described India and Russia as “dead economies” and signalled that penalties could rise further. “I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” he said. The president warned that tariffs could reach 100 per cent on countries continuing to buy Russian oil unless Moscow negotiates peace.
Later that week, on 5th August, Stephen Miller, White House deputy chief of staff, added, “What he (Trump) said very clearly is that it is not acceptable for India to continue financing this war by purchasing the oil from Russia.” He told Fox News, “People will be shocked to learn that India is basically tied with China in purchasing Russian oil. That’s an astonishing fact.”
US-India Tariffs: Global voices split
Navarro also criticised India's deepening ties with China, saying, "You're getting in bed with the authoritarians. China, you've been at war with them for decades. They invaded Aksai Chin and all your territory. These are not your friends."
China has sided with India in opposing Washington’s tariff escalation. At a conference in New Delhi, Ambassador Xu Feihong said, “The US has imposed tariffs of up to 50 per cent on India and even threatened for more. China firmly opposes it… In the face of such acts, silence or compromise only emboldens the bully. China will firmly stand with India to uphold the multilateral trading system with the WTO at its core.”
In contrast, former UK Prime Minister Boris Johnson backed Trump’s approach. Posting on X, he wrote, “Donald Trump has done the brave, principled and logical thing — finally punishing the countries that have been funding Putin’s butchery. When will Britain and the rest of Europe have the guts to do the same?”
India’s oil calculations
India’s Russian oil imports have risen sharply since the Ukraine war began. Data from Kpler showed that shipments reached 2 million barrels per day in August, up from 1.6 million in July. Russian supplies now make up 38 per cent of India’s total crude basket, compared with minimal levels before 2022.
A government source said, “We are buying more from (the US) than before, but we are still buying Russian oil. We can not stop (it). It makes a lot of difference in terms of money.”
In an official statement, the MEA said, "The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India."
"It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest," the statement added.
External Affairs Minister S Jaishankar recalled that the US had once urged India to purchase Russian oil to prevent global price shocks. “We are not the biggest purchasers of Russian oil; that is China. We are not the biggest purchasers of LNG, that is the European Union… We are a country where the Americans have said for the last few years that we should do everything to stabilise the world energy market, including buying oil from Russia.”
Jaishankar even went on to say, "Incidentally, we also buy oil from the US, and that amount has increased. So honestly, we are very perplexed at the logic of the argument that you (the media) had referred to."
Prime Minister Narendra Modi reinforced the government’s stance, saying, “We will bear the pressure, but we will not compromise the interests of farmers, cattle-rearers, and small-scale industries.”
The Ministry of External Affairs described the US move as “extremely unfortunate” and stressed that oil imports were driven by market realities. “The United States has in recent days targeted India’s oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall
objective of ensuring the energy security of 1.4 billion people of India. It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.”
US tariffs to pose a challenge to Indian economy?
As reported by ANI, recent US tariffs on Indian exports may have a limited immediate impact, but a report by the Department of Economic Affairs under the Ministry of Finance reveals potential challenges for the Indian economy.
According to the report, broader effects could emerge in areas like supply chains and inflation. It stated, "While the immediate impact of recent US tariffs on Indian exports may appear limited, their secondary and tertiary effects on the economy pose challenges."
To address these challenges, the government has announced policy initiatives to boost growth. These include a Task Force for Next-Generation Reforms to simplify regulations and lower costs for businesses.
The government is also preparing Next-Generation GST Reforms to reduce the tax burden on essential items.
A recent rating upgrade is expected to lower borrowing costs and attract foreign investment.
US President Donald Trump launched sweeping and substantial tariffs on India. In addition to a 25% tariff that went into effect on Thursday, Trump also announced a 25% tariff on India as punishment for importing Russian oil and gas.
Those combined penalties would bring the total tariff on goods exported to the US to a whopping 50% - among the highest the US charges. Trump imposed the new tariffs, saying it was helping Russia wage war in Ukraine.
"India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits. They don't care how many people in Ukraine are being killed by the Russian War Machine," he wrote on social media.
Source Name : Economic Times