‘India Bankrolls Russia’: Trump Trade Adviser Escalates Criticism with 50% Tariff Justification

Washington’s New Rhetoric

Former US President Donald Trump’s trade adviser, Peter Navarro, has reignited debate on India’s energy and trade policies, accusing New Delhi of “bankrolling Russia” through its growing crude oil imports. His comments came just a day after he controversially dubbed Russia’s invasion of Ukraine as “Modi’s war.”

Navarro, himself a strong supporter of protectionist trade practices, supported Trump’s suggested 50% tariffs on Indian imports and portrayed them not just as a reaction to “unfair trade” but also as a national security measure aimed at cutting off Moscow’s financial lifelines.

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The ‘India-Russia Oil Mathematics’

Unraveling what he referred to as the oil-trade disparity, Navarro charged that India is utilizing US dollars from exports to purchase discounted Russian crude, refine it, and then resell it for a profit in Europe, Africa, and Asia.

• Pre-2022 war: Russian oil accounted for less than 1% of India’s crude imports.
• Currently: More than 30% of India’s crude basket comes from Russia (approximately 1.5 million barrels per day).
• Refined exports: India currently exports 1 million barrels/day of refined fuels, surpassing half of what it imports from Russia.

Navarro claimed these profits enrich politically connected Indian refiners while allowing the Kremlin to sustain its military campaign.
“India’s Big Oil lobby has turned the largest democracy into a refining hub and oil money laundromat for the Kremlin,” Navarro said in a thread on X.

A $50 Billion Deficit and Tariff Pressure

Navarro linked these oil flows to the overall US-India trade deficit, noting that Washington has a $50 billion trade deficit with India.

He argued:

• India imposes high tariffs and non-tariff restrictions on American products.
• While requiring sensitive US defense technology, India still purchases Russian military equipment.
• The US bears the cost of equipping Ukraine while India enjoys energy arbitrage.

Navarro explained that the 50% tariff Trump has suggested represents both “unfair trade” (25%) and “national security” concerns (25%).

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Senator Lindsey Graham Joins In

Republican Senator Lindsey Graham broadened condemnation to include China and Brazil, contending that those countries’ purchases of crude allow Russia to finance its war machine.

Referring to a Russian missile attack on Kyiv that killed 23 civilians, Graham connected Moscow’s war chest directly to energy buyers:
“India is experiencing the cost of supporting Putin. To the rest, you will soon too,” Graham warned on X.

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India’s Response and Global Context

India, however, has consistently defended its oil strategy:

• New Delhi argues that Russian crude is crucial for keeping domestic fuel prices stable.
• Indian officials note that the G7 price cap of $60 per barrel was designed to allow countries like India to continue buying Russian oil without breaching sanctions.
• Energy experts point out that India’s role as a refining hub helps maintain global supply stability, particularly in Europe and Africa.

Moreover, China remains the largest buyer of Russian crude, yet Washington has so far spared Beijing from similar tariffs—raising questions about the political targeting of India.

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Who is Peter Navarro?

• Former professor and staunch Trump ally.
• Architect of Trump’s trade war with China and supporter of tariffs on India.
• Author of Death by China, where he controversially used a fictional expert, “Ron Vara,” to support his arguments.
• Served a four-month prison term for contempt of Congress related to the 2020 election probe.

Navarro’s fiery rhetoric reflects Trump’s long-standing skepticism of free trade and growing Republican criticism of India’s balancing act between Washington and Moscow.

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FAQs

Q1. Why is India buying so much Russian oil?
A: Because Russian crude is heavily discounted, helping India stabilize domestic prices and reduce inflationary pressures.

Q2. Does India violate US or global sanctions?
A: No. Purchases remain within the G7 price cap framework designed to restrict Kremlin revenues while maintaining supply.

Q3. Why is the US targeting India more than China?
A: Analysts suggest India is seen as more vulnerable to tariff pressure, whereas China’s scale makes similar measures riskier for global supply chains.

Q4. What does the 50% tariff mean for Indian exporters?
A: If enforced, it would sharply raise costs for Indian goods in the US market, potentially reducing exports in textiles, pharmaceuticals, and IT-related products.

Q5. How big is the US-India trade deficit?
A: Roughly $50 billion, with India exporting far more goods and services to the US than it imports.

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Conclusion

Navarro and Graham’s comments highlight the precarious equilibrium in US-India relations, where trade tensions intersect with global geopolitics. As Washington blames India for indirectly financing Russia’s war, New Delhi justifies its oil policy as a commercial imperative in line with international norms.

The sharp rhetoric underscores a broader dilemma: whether America’s push to punish Russia will strain ties with India, a key Indo-Pacific partner, or whether New Delhi’s growing trade power and domestic market will allow it to weather the pressure with minimal economic damage.