Tensions between the United States and India have escalated once again over trade and energy relations. US President Donald Trump's trade advisor, Peter Navarro, has labeled India the "king of tariffs" and accused it of profiting by purchasing Russian oil.
World News: US President Donald Trump recently announced a 25 percent additional tariff on India, which could take effect in just a few days. This move is expected to further strain US-India trade relations. Meanwhile, President Trump's trade advisor, Peter Navarro, has branded India as the "king of tariffs."
He alleged that India is planning to profit by continuing to import Russian oil. Navarro even claimed that a total tariff of up to 50 percent will be imposed on India in the coming days.
US Allegation: India Becomes a 'Laundromat' for Russia
Speaking to reporters outside the White House, Peter Navarro said that India bought almost no Russian oil before the start of the Russia-Ukraine war in February 2022. According to him, at that time, these imports accounted for only 1% of India's energy needs. But after the war, India's Russian oil imports increased to 35%.
Navarro alleged, "India doesn't really need that much oil. This is all a refining profit-sharing scheme. India imports Russian oil, refines it, and then sells it on the international market. This is directly acting as a laundromat for the Kremlin."
Threat of New Tariffs from August 27
US President Trump recently announced a 25% additional tariff on India. This punitive tariff is likely to come into effect from August 27. Navarro says that this rate could gradually increase to 50%, which would be one of the highest tariffs imposed on any country's products. The Trump administration argues that growing Indian imports from Russia are providing economic support to Moscow to continue the war. The US and its allies have already imposed a cap of $60 per barrel on Russian crude oil to limit Russia's energy revenues.
India has bly responded to these allegations. External Affairs Minister S. Jaishankar, who was on a visit to Russia, reacted to the American criticism by saying that the Indian government is closely monitoring all the statements made by the United States. Jaishankar said, "We are a country that the US itself has been telling for many years that we should take all possible steps to stabilize global energy markets. This includes buying oil from Russia. India will do what is in its national interest for its energy security and affordable prices."
Why Did India Increase Russian Oil Imports?
After the Ukraine war started in 2022 and Western countries imposed strict economic sanctions on Russia, Russia started selling oil to Asian countries at huge discounts. India, which is the world's third-largest oil consumer, took advantage of this opportunity and imported crude oil from Russia at record levels. Experts say that this strategy of India is economically sensible, as it keeps domestic energy prices under control and reduces the impact on inflation.
However, the US and its allies believe that this move is indirectly strengthening Russia's war capabilities. Trade, defense, and technology cooperation between India and the US has increased in the last few years. But differences between the two countries regarding Russian oil imports are constantly emerging.
