Though the US imposed an additional 25 per cent tariff on India for its energy ties with Russia, it has not initiated similar actions against China, the largest buyer of Russian crude oil.
Calling India the “Maharaj” of tariffs, US President Donald Trump’s trade adviser, Peter Navarro, accused New Delhi of running a “profiteering scheme” by continuing to import Russian oil, and said he expects punitive tariffs of 50 per cent on Indian imports to take effect as planned next week.
“I see that taking place,” Navarro told reporters outside the White House when asked about the 25 per cent punitive tariffs on India that are set to kick in on August 27.
“Prior to Russia’s invasion of Ukraine in February 2022, India virtually bought no Russian oil…It was like almost one per cent of their need. The percentage has now gone up to 35 per cent…They don’t need the oil. It’s a refining profit-sharing scheme. It’s a laundromat for the Kremlin. That’s the reality of that,” Navarro said.
The fresh salvo from the trade hawk comes after India has signalled it’ll keep buying Russian oil. Stung by the steep 50 per cent levy, the Indian government has reiterated its long-standing friendship with Russia and moved to ease tensions with regional rival China in recent days.
India’s Response
During his Moscow trip, Foreign Minister S Jaishankar responded to American officials’ criticism of India’s trade ties with Russia, and said the Indian government is “perplexed” by the US threats, as Washington itself had asked New Delhi to help stabilise global energy markets by buying Russian oil.
“We are a country where, actually, the Americans said for the last few years that we should do everything to stabilise the world energy markets, including buying oil from Russia,” he said.
India’s Russia Oil Trade
India has ramped up oil imports from Russia since the full-scale invasion of Ukraine began in 2022, when the Group of Seven nations imposed a $60-per-barrel price cap on Moscow’s crude that aimed to limit the Kremlin’s energy revenue. The Trump administration claims those purchases are helping fund Russia’s war, with 50 per cent tariffs on Indian goods set to be among the highest on any country’s products.
Navarro said the argument that India needs Russian oil to meet its energy requirements does not make any sense.
“Look, Modi is a great leader. But please, please India, like, look at what is, what your role here is in the global economy and good here. It’s like, what you’re doing right now is not creating peace, it’s perpetuating the war,” the trade advisor added.
He claimed India gets cheap Russian oil and makes refined products which they sell at premium prices in Europe, Africa and Asia, he said. “It is purely profiteering by the Indian refining industry.”
India accounts for 37 per cent of Russia’s oil exports, according to Moscow-based Kasatkin Consulting.
“What is the net impact on Americans because of our trade with India? They are Maharaj in tariff. (We have) higher non-tariff barriers, massive trade deficit etc — and that hurts American workers and American business…The money they get from us, they use it to buy Russian oil which then is processed by their refiners,” he said.
“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…India does not want to recognise its role in the bloodshed,” he added.
China Claim
The White House Trade Adviser also accused India of “cosying up to” Chinese President Xi Jinping.
In the face of Trump’s broadsides, which include saying India’s economy is “dead,” New Delhi has been seeking to improve relations with Beijing. The two sides this week agreed to explore demarcating their disputed border after Chinese Foreign Minister Wang Yi wrapped up a two-day visit.
“China firmly stands with India to uphold the multilateral trading system and safeguard international fairness and justice,” Xu Feihong, China’s ambassador to India, wrote in a post on X.
Trump Tariffs
The relations between New Delhi and Washington are on a downturn after US President Donald Trump doubled tariffs on Indian goods to a whopping 50 per cent, including a 25 per cent additional duty for India’s purchase of Russian crude oil.
