India's High Tariffs Criticised by White House Trade Adviser Peter Navarro Amid Energy Tensions

White House Trade Adviser Peter Navarro criticises India's high tariffs and its energy ties with Russia. He highlights the growing percentage of Russian oil imports and the resulting strain on US-India relations.

White House Trade Adviser Peter Navarro has criticised India for its tariff policies and use of discounted Russian crude oil. He described India's actions as a profiteering scheme. His comments coincided with External Affairs Minister S Jaishankar's response to US criticism regarding India's energy ties with Russia. Jaishankar mentioned that the US had requested India to help stabilise global energy markets by purchasing Russian oil.

Navarro also highlighted India's growing closeness with Chinese President Xi Jinping. Relations between New Delhi and Washington have soured, especially after US President Donald Trump increased tariffs on Indian goods to 50%. This includes an additional 25% duty due to India's purchase of Russian crude oil.

India's Energy Procurement Strategy

Before Russia's invasion of Ukraine in February 2022, India barely purchased Russian oil, accounting for almost 1% of its needs. However, this figure has surged to 35%, according to Navarro. He criticised India's justification for needing Russian oil, arguing that it doesn't hold water. "They get chip Russian oil and make refined products which they sell at premium prices in Europe, Africa and Asia," he stated, accusing the Indian refining industry of profiteering.

Navarro's recent criticism follows his article in the Financial Times condemning India's procurement of Russian crude oil. He questioned the impact on Americans due to trade with India, labelling India as a "Maharaj in tariff." He pointed out higher non-tariff barriers and a massive trade deficit that he believes harm American workers and businesses.

Impact on Global Relations

Navarro expressed concern over how India uses money from the US to buy Russian oil, which is then processed by Indian refiners. He claimed that Russians use this money to build arms, contributing to the conflict in Ukraine. "The Russians use the money to build arms and kill Ukrainians and Americans tax-payers have to provide more aid and military hardware to Ukrainians. That's insane," he said.

Despite imposing an additional 25% tariff on India for its energy ties with Russia, the US has not taken similar actions against China, which is the largest buyer of Russian crude oil. India has defended its purchase of Russian crude oil by stating that its energy procurement is guided by national interest and market dynamics.

India's Response to Criticism

India began buying discounted Russian oil after Western nations sanctioned Moscow over its invasion of Ukraine in February 2022. Consequently, Russia's share in India's total oil imports rose from 1.7% in 2019-20 to 35.1% in 2024-25, making it India's largest oil supplier.

India maintains that its energy procurement decisions are based on national interest and market conditions. The country turned to Russian oil sold at a discount after Western countries imposed sanctions on Moscow and avoided its supplies following the Ukraine invasion.

The ongoing tensions highlight the complexities of international trade relations amid geopolitical conflicts. While India seeks affordable energy sources, the US remains concerned about the broader implications of such trade practices on global stability and security.

With inputs from PTI