A top aide to former U.S. President Donald Trump is escalating criticism of India's trade practices, particularly its relationship with Russia and China. Peter Navarro, formerly Trump's trade advisor, has recently labeled India a "laundromat for the Kremlin," accusing the country of refining discounted Russian oil and selling it at premium prices, thus allegedly финансируя Moscow's war efforts in Ukraine. This accusation follows Navarro's earlier description of India as the "Maharaja of Tariffs," as he defended the U.S.'s decision to impose tariffs on Indian goods.
Navarro asserted that India's oil purchases from Russia were minimal before the 2022 invasion of Ukraine, and that the current increase to 30-35% is unnecessary. He argues that India's actions demonstrate a disregard for its role in the conflict and suggest a growing alignment with Chinese President Xi Jinping. He views India's oil trade with Russia as a "refining profiteering scheme" that ultimately benefits the Kremlin.
These remarks come as the Trump administration is set to implement a 50% tariff on Indian goods. The first half of these duties came into effect earlier in August, with the remainder scheduled for August 27. Navarro has stated that these tariffs are a response to India's unfair trade practices and its continued purchase of Russian oil. He believes India is "cheating" the U.S. on trade and that the profits from Russian oil are being used to fund Moscow's war.
India has strongly refuted these accusations. External Affairs Minister S Jaishankar has expressed bewilderment at the logic of targeting India, given that China is the largest purchaser of Russian oil and the European Union remains the biggest buyer of Russian LNG. He also pointed out that India imports oil from the U.S.. The Ministry of External Affairs issued a statement emphasizing that India's imports are based on "market factors" and are aimed at ensuring the energy security of its 1.4 billion people. The ministry described the additional tariffs as "extremely unfortunate" and affirmed that India would take necessary actions to protect its national interests.
Some analysts believe that the Trump administration's policies are pushing India closer to Russia and China. Amidst the tensions with the U.S., India has reiterated its long-standing friendship with Russia and has taken steps to ease tensions with China. Prime Minister Narendra Modi is reportedly planning his first trip to China in over seven years, and Russian President Vladimir Putin is expected to host him in Moscow later this year. Some observers suggest that India's recent diplomatic activity is a signal of its displeasure with Washington's actions.
The situation is further complicated by the fact that while the U.S. has been critical of India's oil trade with Russia, it has not imposed similar sanctions on China, the largest purchaser of Russian oil. This has led to questions about the rationale behind the U.S.'s approach. Despite the tensions, Navarro has expressed his appreciation for India and Prime Minister Modi, urging India to consider its role in the global economy and to recognize that its current actions are "not creating peace" but "perpetuating the war".
