White House trade adviser Peter Navarro accused India of helping finance Russia’s war in Ukraine through continued oil imports, describing the conflict as “Modi’s war.”
“I mean Modi’s war because the road to peace runs, in part, through New Delhi,” Navarro told Bloomberg Television’s Balance of Power on Wednesday.
He argued that buying discounted Russian crude directly strengthens Moscow’s military effort. “By purchasing Russian oil at a discount, Russia uses the money it gets to fund its war machine,” he said. “Everybody in America loses because of what India is doing. The consumers and businesses and everything lose, and workers lose because India’s high tariffs cost us jobs, and factories, and income and higher wages. And then the taxpayers lose because we got to fund Modi’s war.”
“What’s troubling to me,” Navarro said, “is that the Indians are so arrogant about this. They say, ‘Oh, we don’t have higher tariffs. Oh, it’s our sovereignty. We can buy oil from any one we want.’”
“India, you’re the biggest democracy in the world, OK, act like one,” Navarro added.
Navarro added that India could see relief on tariffs if it changes course. “It’s real easy. India can get 25% off tomorrow if it stops buying Russian oil and helped to feed the war machine.”
India-US tariffs: 50 percent tariffs come into force
The criticism coincided with the start of new tariffs on Indian goods ordered by President Donald Trump. The additional 25 percent duty has doubled the rate to 50 percent, hitting more than 55 percent of India’s exports to the United States. Items such as garments, gems and jewellery, footwear, chemicals and sporting goods are among those affected, while electronics and pharmaceuticals are exempt.
The levies are among the steepest imposed on any Asian economy. Analysts warn they could hit thousands of small exporters and jobs, including in Prime Minister Narendra Modi’s home state of Gujarat.
Also Read: Trump’s 50% tariff shock hits India – what it means for growth, jobs, and hardest-hit sectors
US Tariffs: India pushes back
Indian ministers have rejected the criticism, calling the US action unjustified. Junior foreign minister Kirti Vardhan Singh told Reuters, “We are taking appropriate steps so that it does not harm our economy, and let me assure you that the strength of our economy will carry us through these times. Our concern is our energy security, and we will continue to purchase energy sources from whichever country benefits us.”
India’s policy is guided by its dependence on imported crude. The country imports more than 85 percent of its oil needs for a refining capacity of 5.2 million barrels per day. Officials say Russian oil, purchased at a discount, has helped cushion domestic energy prices for its 1.4 billion people.
Also Read: Sectoral impact: Industry to sit down with RBI for tariff assessment
Trump tariffs: The shift to Russian oil
Before the Ukraine war, India relied more heavily on the Middle East for crude. That changed after 2022, when Western nations imposed a price cap of 60 dollars per barrel on Russian exports to restrict Kremlin revenues but keep supplies flowing. India took advantage of discounted cargoes, becoming the world’s biggest buyer of Russian seaborne crude.
Between January and July this year, India imported 1.73 million barrels per day from Russia, more than a third of its total. Private refiners Reliance Industries and Nayara Energy, the latter majority-owned by Rosneft, account for around 60 percent of these imports.
Discounts have narrowed sharply, from as much as 25 dollars per barrel in early 2022 to about 2.50 dollars today. With margins squeezed, state refiners have slowed purchases, but officials say replacing Russian oil entirely would raise costs significantly.
US-India trade talks stalled
The tariff escalation follows five failed rounds of trade talks. Washington had pressed for India to lower duties, which average 7.5 percent but climb to 100 percent on some farm goods and cars. US officials say India’s high barriers hurt access for American products.
India’s trade ministry has said it hopes the US will review the additional 25 percent duty. For now, exemptions remain for goods shipped before the deadline and for items already covered under national security tariffs such as steel, aluminium and vehicles.
Also Read: Tariff not a cause for panic, impact unlikely to be as severe as feared: Govt sources
Exporters weigh the costs
As told to ANI, the Federation of Indian Export Organisations (FIEO) estimates that more than half of India’s exports to the US are now affected. Its director general Ajay Sahai warned, “In fact, the 50% additional tariff is applicable on roughly 55% of our exports. Exports of products like pharmaceuticals, mobile phones, and petroleum still continue at zero duty… In the short term, we should also be prepared to take some hits, and the unfortunate part is that, from the MSMEs’ perspective, who hardly have deep pockets, we are a little concerned about that.”
He urged support for reskilling to ensure workers remain on payrolls during this period.
Similarly in a different ANI interview, the Indian Rice Exporters Federation was more optimistic. Vice president Dev Garg said, “…It is the US consumer who has to bear the brunt of all these additional tariffs and the Indian industry will remain largely insulated… Once there is acceptance of these higher prices in the domestic market, it is the exporters who benefit in the long term.”
Also Read: PM Modi's Diwali sparkle faces tough test amid Trump’s tariff sting
Wider implications for India and the US
The US and India remain important security partners with shared concerns about China, but the trade standoff has cast a shadow on the relationship. While China is also a major buyer of Russian crude, Trump has avoided similar penalties amid a fragile trade truce between Washington and Beijing.
The disruption could slow India’s ambition to present itself as an alternative manufacturing hub to China, with as many as two million jobs at risk in the short term. Yet analysts note that strong domestic demand, a diversified export base and stable economic fundamentals may soften the blow.
For now, both sides have signalled a willingness to keep talks going. A joint statement from senior officials this week said they were “eager to continue enhancing the breadth and depth of the bilateral relationship.”
(With inputs from Bloomberg, Reuters, ANI)
“I mean Modi’s war because the road to peace runs, in part, through New Delhi,” Navarro told Bloomberg Television’s Balance of Power on Wednesday.
He argued that buying discounted Russian crude directly strengthens Moscow’s military effort. “By purchasing Russian oil at a discount, Russia uses the money it gets to fund its war machine,” he said. “Everybody in America loses because of what India is doing. The consumers and businesses and everything lose, and workers lose because India’s high tariffs cost us jobs, and factories, and income and higher wages. And then the taxpayers lose because we got to fund Modi’s war.”
“What’s troubling to me,” Navarro said, “is that the Indians are so arrogant about this. They say, ‘Oh, we don’t have higher tariffs. Oh, it’s our sovereignty. We can buy oil from any one we want.’”
“India, you’re the biggest democracy in the world, OK, act like one,” Navarro added.
Navarro added that India could see relief on tariffs if it changes course. “It’s real easy. India can get 25% off tomorrow if it stops buying Russian oil and helped to feed the war machine.”
India-US tariffs: 50 percent tariffs come into force
The criticism coincided with the start of new tariffs on Indian goods ordered by President Donald Trump. The additional 25 percent duty has doubled the rate to 50 percent, hitting more than 55 percent of India’s exports to the United States. Items such as garments, gems and jewellery, footwear, chemicals and sporting goods are among those affected, while electronics and pharmaceuticals are exempt.
The levies are among the steepest imposed on any Asian economy. Analysts warn they could hit thousands of small exporters and jobs, including in Prime Minister Narendra Modi’s home state of Gujarat.
Also Read: Trump’s 50% tariff shock hits India – what it means for growth, jobs, and hardest-hit sectors
US Tariffs: India pushes back
Indian ministers have rejected the criticism, calling the US action unjustified. Junior foreign minister Kirti Vardhan Singh told Reuters, “We are taking appropriate steps so that it does not harm our economy, and let me assure you that the strength of our economy will carry us through these times. Our concern is our energy security, and we will continue to purchase energy sources from whichever country benefits us.”
India’s policy is guided by its dependence on imported crude. The country imports more than 85 percent of its oil needs for a refining capacity of 5.2 million barrels per day. Officials say Russian oil, purchased at a discount, has helped cushion domestic energy prices for its 1.4 billion people.
Also Read: Sectoral impact: Industry to sit down with RBI for tariff assessment
Trump tariffs: The shift to Russian oil
Before the Ukraine war, India relied more heavily on the Middle East for crude. That changed after 2022, when Western nations imposed a price cap of 60 dollars per barrel on Russian exports to restrict Kremlin revenues but keep supplies flowing. India took advantage of discounted cargoes, becoming the world’s biggest buyer of Russian seaborne crude.
Between January and July this year, India imported 1.73 million barrels per day from Russia, more than a third of its total. Private refiners Reliance Industries and Nayara Energy, the latter majority-owned by Rosneft, account for around 60 percent of these imports.
Discounts have narrowed sharply, from as much as 25 dollars per barrel in early 2022 to about 2.50 dollars today. With margins squeezed, state refiners have slowed purchases, but officials say replacing Russian oil entirely would raise costs significantly.
US-India trade talks stalled
The tariff escalation follows five failed rounds of trade talks. Washington had pressed for India to lower duties, which average 7.5 percent but climb to 100 percent on some farm goods and cars. US officials say India’s high barriers hurt access for American products.
India’s trade ministry has said it hopes the US will review the additional 25 percent duty. For now, exemptions remain for goods shipped before the deadline and for items already covered under national security tariffs such as steel, aluminium and vehicles.
Also Read: Tariff not a cause for panic, impact unlikely to be as severe as feared: Govt sources
Exporters weigh the costs
As told to ANI, the Federation of Indian Export Organisations (FIEO) estimates that more than half of India’s exports to the US are now affected. Its director general Ajay Sahai warned, “In fact, the 50% additional tariff is applicable on roughly 55% of our exports. Exports of products like pharmaceuticals, mobile phones, and petroleum still continue at zero duty… In the short term, we should also be prepared to take some hits, and the unfortunate part is that, from the MSMEs’ perspective, who hardly have deep pockets, we are a little concerned about that.”
He urged support for reskilling to ensure workers remain on payrolls during this period.
Similarly in a different ANI interview, the Indian Rice Exporters Federation was more optimistic. Vice president Dev Garg said, “…It is the US consumer who has to bear the brunt of all these additional tariffs and the Indian industry will remain largely insulated… Once there is acceptance of these higher prices in the domestic market, it is the exporters who benefit in the long term.”
Also Read: PM Modi's Diwali sparkle faces tough test amid Trump’s tariff sting
Wider implications for India and the US
The US and India remain important security partners with shared concerns about China, but the trade standoff has cast a shadow on the relationship. While China is also a major buyer of Russian crude, Trump has avoided similar penalties amid a fragile trade truce between Washington and Beijing.
The disruption could slow India’s ambition to present itself as an alternative manufacturing hub to China, with as many as two million jobs at risk in the short term. Yet analysts note that strong domestic demand, a diversified export base and stable economic fundamentals may soften the blow.
For now, both sides have signalled a willingness to keep talks going. A joint statement from senior officials this week said they were “eager to continue enhancing the breadth and depth of the bilateral relationship.”
(With inputs from Bloomberg, Reuters, ANI)
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