Peter Navarro, a former trade advisor to President Trump, has sharply criticized India for its continued purchase of crude oil from Russia, warning that New Delhi risks facing significant economic consequences if it does not alter its course. In a recent opinion piece published in the Financial Times, Navarro accused India of "opportunistic" behavior that undermines global efforts to isolate the Russian economy following its invasion of Ukraine.

Navarro argues that India's reliance on Russian crude oil provides a crucial financial lifeline to Moscow, effectively funding its war machine. He claims that India acts as a "global clearinghouse" for Russian oil, importing embargoed crude, refining it, and then exporting high-value petroleum products to other countries, thus providing Russia with much-needed revenue.

The former White House advisor further contends that American consumers inadvertently contribute to this arrangement by purchasing Indian goods, the dollars from which are then used by India to buy discounted Russian oil. This, according to Navarro, forces American and European taxpayers to spend more on aiding Ukraine's defense.

Navarro has also criticized India's trade policies, alleging that the country imposes some of the highest average tariffs and non-tariff barriers in the world, which he says "punish" American workers and businesses. He highlights the significant trade deficit between the U.S. and India, nearing $50 billion annually, and argues that India is using these trade dollars to further its dependence on Russian oil.

To address this situation, Navarro is advocating for a tougher stance against India, supporting President Trump's recent executive order that imposes a 25% national security tariff on Indian goods. This tariff, coupled with existing trade barriers, effectively raises tariffs on imports from India to 50%. Navarro believes this "two-pronged policy" will hit India where it hurts – its access to U.S. markets – while simultaneously cutting off the financial support it provides to Russia.

Navarro has also raised concerns about defense technology transfers from U.S. firms to India. He argues that transferring sensitive technologies and building factories in India does not improve the trade balance between the two countries and carries inherent risks, especially as India is "cozying up to both Russia and China". He suggests that it is risky to sell cutting-edge weapons to India.

India's increasing reliance on Russian oil is a relatively recent phenomenon. In 2021, India imported negligibly from Russia, relying more on the Middle East. However, since the start of the war in Ukraine and the subsequent imposition of sanctions on Russia, India has significantly increased its Russian oil imports, with Russia now accounting for about 37% of India's total oil imports. Navarro claims that this surge is not driven by domestic consumption needs but by the "profiteering" of India's "Big Oil lobby".

The Indian Ministry of External Affairs has previously stated that India is being unfairly singled out for buying Russian oil, while the U.S. and European Union continue to purchase goods from Russia. However, Navarro argues that the scale and nature of India's oil trade with Russia, particularly its role in refining and re-exporting Russian crude, makes it a unique case that requires a strong response.

The U.S. and India have a complex relationship with strategic interests, particularly in balancing China's influence in the region. However, the disagreement over Russian oil and trade imbalances threatens to strain these ties. A planned visit by U.S. trade negotiators to New Delhi has been called off, delaying talks on a proposed trade agreement.