Friday 22 / August / 2025
Washington, DC: White House Trade Adviser Peter Navarro on Thursday (local time) claimed that India is cozying up to China's President Xi Jinping, adding New Delhi of acting as a "laundromat for the Kremlin" by purchasing discounted Russian crude oil, refining it, and selling the products at a premium globally.
However, Navarro mixed his criticism with praise for India's leadership, adding that "the road to peace runs through New Delhi."
He said that this arrangement allows Russia to fund its war efforts in Ukraine, while India profits from the transactions.
"India doesn't appear to want to recognise its role in the bloodshed... It's cosying up to Xi Jinping (Chinese President). They (India) don't need the (Russian) oil. It's a refining profiteering scheme. It's a laundromat for the Kremlin. I love India. Modi is a great leader, but please, India, look at your role in the global economy. What you're doing right now is not creating peace. It's perpetuating the war," the White House trade advisor said.
Notably, his statements come after Nikki Haley, former US Ambassador to the United Nations, has emphasised the importance of treating India as a "prized free and democratic partner" in the global effort to counter China's growing influence. In her opinion piece on Newsweek, she warned that damaging the 25-year momentum in US-India relations would be a "strategic disaster."
She urged Donald Trump to "reverse the downward spiral" and hold direct talks with PM Modi. "The sooner the better," she said.
Haley believes India is the only country that can serve as a counterweight to Chinese dominance in Asia, making it crucial for the US to maintain a strong partnership.
Moreover, renowned economist Jeffrey Sachs has strongly criticised the US administration's decision to impose steep tariffs on India, calling them "bizarre" and "very self-destructive of US foreign policy interests".
In a recent interview with ANI, Sachs expressed concerns that these tariffs will undermine years of efforts to strengthen US-India relations. Sachs described the tariffs as "not a strategy, but sabotage" and the "stupidest tactical move in US foreign policy", which has unified the BRICS countries like never before.
Trump announced 25 per cent tariffs on Indian goods in July, even as there were hopes of an interim India-US trade deal that would have otherwise helped avoid elevated tariffs. A few days later, he imposed another 25 per cent tariff, taking the total to 50 per cent, citing India's continued imports of Russian oil.
Roman Babushkin, Charge d'Affaires at the Russian Embassy in New Delhi, recently slammed the US decision, calling it "unjustified and unilateral". He emphasised that such actions disrupt global supply chains and destabilise markets.
Meanwhile, Russian President Vladimir Putin noted during Alaska's press conference with Trump on August 16 that bilateral trade between the two nations has increased by 20 per cent since Trump's reinstatement as President.
Navarro argued that India doesn't need Russian oil, pointing out that before the Ukraine invasion in February 2022, India imported less than 1% of its oil from Russia, whereas now it imports around 35-40%.
"Prior to Russia's invasion of Ukraine in February 2022, India bought virtually no Russian oil... The argument now, when this percentage has gone up to 30-35%, that somehow they need Russian oil, is nonsense... Russian refiners have gotten in bed with Italian refiners in a game in which they get cheap Russian crude at a discount. Then they make refined products, which they sell at premium prices into Europe, Africa and Asia," he said.
Navarro further stated that US imposed a 50% tariff on Indian goods, effective August 27, citing India's continued purchase of Russian oil amid geopolitical tensions over the Russia-Ukraine war. The total tariff rate combines a baseline 10% duty with a 25% reciprocal tariff and an additional 25% tariff.
He described India's barriers as "higher tariffs, Maharaja tariffs, higher non-tariff barriers", arguing that they contributed to a "massive" US trade deficit that "hurts American workers" and "hurts American businesses."
"In India, 25% tariffs were put in place because they cheat us on trade. Then 25% because of the Russian oil... They have higher tariffs, Maharaja tariffs... We run a massive trade deficit with them. So that hurts American workers and businesses. Then they use the money that they get from us when they sell us stuff to buy Russian oil, which then is processed by refiners, and they make a bunch of money there, but then the Russians use the money to build more arms and kill Ukrainians. So American taxpayers have to provide more aid, military style, to the Ukrainians. That's insane, and President Trump sees that chessboard beautifully. In many ways, the road to peace runs through New Delhi," Navarro said.
Navarro's comments come as External Affairs Minister S Jaishankar responded to criticism of India by American officials for its energy ties with Russia, and said the US itself had asked New Delhi to help stabilise global energy markets by buying Russian oil.
Jaishankar called out the US logic to impose tariffs on India, despite China being the biggest purchaser of Russian oil andthe EU being the biggest purchaser of LNG
"We are not the biggest purchasers of Russian oil; that is China. We are not the biggest purchasers of LNG, that is the European Union. We are not the country which has the biggest trade surge with Russia after 2022; I think there are some countries to the South. We are a country where the Americans have said for the last few years that we should do everything to stabilise the world energy market, including buying oil from Russia. Incidentally, we also buy oil from the US, and that amount has increased. So honestly, we are very perplexed at the logic of the argument that you (the media) had referred to..." Jaishankar said, answering a query.
Ministry of External Affairs has maintained a firm stance that India will take "all actions necessary to protect its national interests," despite US attempts to strong-arm New Delhi.
"In an official statement, the MEA said, "The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India."
"It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest," the statement added.
