Washington DC

In what is perhaps the sharpest attack on India regarding Russian oil purchase, the White House Trade Adviser Peter Navarro claimed India of "perpetuating" the Ukraine War by purchasing discounted Russian crude oil.

Alleging that India has been acting as a "laundromat for the Kremlin," Peter Novarro said India's purchase is allowing Russia to fund its war efforts in Ukraine, while New Delhi is reaping profit from the transactions.

"India doesn't appear to want to recognise its role in the bloodshed... It's cosying up to Xi Jinping (Chinese President). They (India) don't need the (Russian) oil. It's a refining profiteering scheme. It's a laundromat for the Kremlin. I love India. Modi is a great leader, but please, India, look at your role in the global economy. What you're doing right now is not creating peace. It's perpetuating the war," the White House trade advisor said.

Notably, his statements come after Nikki Haley, former US Ambassador to the United Nations, has emphasised the importance of treating India as a "prized free and democratic partner" in the global effort to counter China's growing influence. In her opinion piece on Newsweek, she warned that damaging the 25-year momentum in US-India relations would be a "strategic disaster."

She urged Donald Trump to "reverse the downward spiral" and hold direct talks with PM Modi. "The sooner the better," she said.

Haley believes India is the only country that can serve as a counterweight to Chinese dominance in Asia, making it crucial for the US to maintain a strong partnership.

Moreover, renowned economist Jeffrey Sachs has strongly criticised the US administration's decision to impose steep tariffs on India, calling them "bizarre" and "very self-destructive of US foreign policy interests".

In a recent interview with ANI, Sachs expressed concerns that these tariffs will undermine years of efforts to strengthen US-India relations. Sachs described the tariffs as "not a strategy, but sabotage" and the "stupidest tactical move in US foreign policy", which has unified the BRICS countries like never before.

Trump announced 25 per cent tariffs on Indian goods in July, even as there were hopes of an interim India-US trade deal that would have otherwise helped avoid elevated tariffs. A few days later, he imposed another 25 per cent tariff, taking the total to 50 per cent, citing India's continued imports of Russian oil.

Additionally, Navarro argued that India doesn't need Russian oil, pointing out that before the Ukraine invasion in February 2022, India imported less than one per cent of its oil from Russia, whereas now it imports around 35-40 per cent.

"Prior to Russia's invasion of Ukraine in February 2022, India bought virtually no Russian oil... The argument now, when this percentage has gone up to 30-35%, that somehow they need Russian oil, is nonsense... Russian refiners have gotten in bed with Italian refiners in a game in which they get cheap Russian crude at a discount. Then they make refined products, which they sell at premium prices into Europe, Africa and Asia," he said.

Meanwhile, Russian President Vladimir Putin noted during Alaska's press conference with Trump on August 16 that bilateral trade between the two nations has increased by 20 per cent since Trump's reinstatement as President.

Navarro further stated that US imposed a 50% tariff on Indian goods, effective August 27, citing India's continued purchase of Russian oil amid geopolitical tensions over the Russia-Ukraine war. The total tariff rate combines a baseline 10% duty with a 25% reciprocal tariff and an additional 25% tariff.

He described India's barriers as "higher tariffs, Maharaja tariffs, higher non-tariff barriers", arguing that they contributed to a "massive" US trade deficit that "hurts American workers" and "hurts American businesses."

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"In India, 25% tariffs were put in place because they cheat us on trade. Then 25% because of the Russian oil... They have higher tariffs, Maharaja tariffs... We run a massive trade deficit with them. So that hurts American workers and businesses. Then they use the money that they get from us when they sell us stuff to buy Russian oil, which then is processed by refiners, and they make a bunch of money there, but then the Russians use the money to build more arms and kill Ukrainians. So American taxpayers have to provide more aid,  military style, to the Ukrainians. That's insane, and President Trump sees that chessboard beautifully. In many ways, the road to peace runs through New Delhi," Navarro said.