As tensions over global energy trade mount, India has found itself at the center of a bitter geopolitical storm.
Hours after US President Donald Trump imposed a steep 50 per cent tariff on Indian imports, White House trade adviser Peter Navarro called the Russia-Ukraine war “Modi’s war.”
Meanwhile, Democrats on the US House Foreign Affairs Committee slammed the administration for singling out India while sparing China, which buys even more Russian oil.
The mounting criticism reveals growing cracks in what was once a steadily expanding US-India trade relationship.
As a sub-text, it may be noted that exporters in Gujarat, especially in textiles and chemicals, are preparing for a major setback after the tariff hike. Analysts have warned that orders could drop by up to a third in the coming quarters due to the state’s strong dependence on the US market. Gujarat contributes nearly 30% of India’s textile exports and is also a major center for dyes, chemicals, gems, jewellery, and engineering goods, claim reports.
According to the latest reports, Navarro, in an interview, said, “I mean Modi’s war because the road to peace runs, in part, through New Delhi.” He claimed that India’s purchase of discounted Russian crude has enabled Moscow to fuel its military aggression in Ukraine. “Everybody in America loses because of what India is doing. The consumers and businesses and everything lose, and workers lose because India’s high tariffs cost us jobs, and factories, and income and higher wages. And then the taxpayers lose because we got to fund Modi’s war,” he said.
The 50 per cent duty—the highest reciprocal levy ever imposed by the US on an Asian nation—came into effect earlier Wednesday and now impacts over 55 per cent of Indian exports to the US, India’s largest export destination.
The measure doubled the earlier 25 per cent tariff imposed earlier this month, which had already shaken Indian exporters. Although exemptions have been made for key sectors like pharmaceuticals and electronic goods, industries such as textiles and jewellery have been hit hard.
Prime Minister Narendra Modi’s administration estimates that $48.2 billion worth of exports will be affected, warning that the new duties could render shipments to the US commercially unviable, triggering job losses and slowing economic growth.
“India can get 25 per cent off tomorrow if it stops buying Russian oil and helped to feed the war machine,” Navarro was quoted as saying, pressing New Delhi to change course.
Democrats were quick to strike back at Trump’s tariff move, accusing the administration of selectively penalizing India while sparing China. “Instead of imposing sanctions on China or others purchasing larger amounts of Russian oil, Trump’s singling out India with tariffs, hurting Americans and sabotaging the US-India relationship in the process,” the Democrats said in a statement on X. “It’s almost like it’s not about Ukraine at all,” they added.
They also pointed to a report by an American daily that stated, “It would be one thing if the Trump administration had opted to follow through on the threat of secondary sanctions for any country that purchases Russian oil. But the decision to focus solely on India has resulted in perhaps the most confusing policy outcome of all: China, the largest importer of Russian energy, is still purchasing oil at discount prices and has so far been spared similar punishment.”
The Trump administration’s pressure campaign on India continues despite months of trade negotiations that began soon after Trump took office. India was among the first countries to enter talks with the Trump team, but a deal has remained elusive due to US demands for wider access to Indian agricultural and dairy markets.
Navarro further claimed that Russia was using the revenue from India’s discounted oil purchases to “fund its war machine.” He said this burdened the US, which has had to respond to Kyiv’s repeated appeals for arms and financial assistance. “By purchasing Russian oil at a discount, Russia uses the money it gets to fund its war machine to kill more Ukrainians,” he said, echoing the US President’s stance.
India traditionally relied on Middle Eastern oil, with little dependence on Russian crude. That changed after Russia’s 2022 invasion of Ukraine. The G7 then set a $60-per-barrel price cap to limit Moscow’s revenue but keep oil flowing globally. This allowed India to buy Russian oil at a discount—a feature US officials themselves have acknowledged.
India has defended its actions, arguing that buying discounted Russian oil is necessary to stabilise domestic fuel prices and maintain economic resilience. New Delhi has called the US tariffs “unjustified” and resisted calls to align its energy policy with Washington’s geopolitical stance. PM Modi has vowed not to bow to international pressure.
Navarro, however, took aim at India’s response. “What’s troubling to me is that the Indians are so arrogant about this. They say, ‘Oh, we don’t have higher tariffs. Oh, it’s our sovereignty. We can buy oil from anyone we want… India, you’re the biggest democracy in the world, OK, act like one,” he said.
India-US bilateral trade may have grown but commercial ties remain susceptible to domestic political tensions.
India’s balancing act between economic pragmatism and international expectations has made it the focal point of one of the most contentious policy clashes between Washington and New Delhi in decades.
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