White House advisor Navarro warns India against funding Moscow via Russian oil.
Trump imposes 50% tariffs on Indian goods over continued crude imports.
Rubio defends softer U.S. stance on China citing global energy price risks.
India rejects pressure, confirms "no pause" on Russian oil purchases.
Amid the tariff war, White House Trade Advisor Peter Navarro said India's purchases of Russian crude needs to stop as it was funding Moscow's war in Ukraine. He further mentioned that New Delhi was "now cozying up to both Russia and China."
Writing for Financial Times, Navarro said, "If India wants to be treated as a strategic partner of the U.S., it needs to start acting like one.”
Previously, India's Foreign Ministry has said that the country is being unfairly singled out for buying Russian oil while the United States and European Union continue to purchase goods from Russia. Earlier this month, U.S. President Donald Trump imposed an additional 25% tariff on Indian goods blaming New Delhi's continued purchases of Russian oil. This has taken the total tariffs on Indian imports to 50%.
India’s allegations on being singled out does hold relevance in the current global geopolitical scenario. This can be understood in the context of follows growing questions over why the United States imposed an additional 25% tariff on India for purchasing Russian oil, while taking no similar action against China.
Recently in an interview to Fox News, US Secretary of State Marco Rubio defended his country’s stand warning that energy prices could rise if the United States imposes secondary sanctions on China for refining Russian oil. He said, "If you put secondary sanctions on a country – let’s say you were to go after the oil sales of Russian oil to China. Well, China just refines that oil. That oil is then sold into the global marketplace, and anyone who’s buying that oil would be paying more for it or, if it doesn’t exist, would have to find an alternative source for it."
Navarro’s Claims on India’s Crude Purchase
The White House Trade Advisor noted that India acts as a ‘global clearinghouse’ for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs. He further said that it was risky to transfer cutting-edge U.S. military capabilities to India as New Delhi was "now cozying up to both Russia and China."
On the other hand, neighbor cum rivals China and India are quietly and cautiously strengthening ties against the backdrop of Trump's unpredictable approach to both. Prime Minister Narendra Modi is set to meet Chinese President Xi Jinping at the end of the month while Chinese Foreign Minister Wang Yi will visit India from Monday for talks on the disputed border between the two countries.
Additionally, a visit by U.S. trade negotiators to New Delhi is from August 25-29 has been called off, a source said over the weekend. This marks further delay of a proposed trade agreement and dashing hopes of relief from additional U.S. tariffs on Indian goods from August 27.
Rubio Defends US’ Double Standards on Russian Oil
China remains the largest buyer of Russian oil, at about 2 million barrels per day, followed by India and Turkey. As per the US Treasury Secretary Rubio, China just refines the oil taken from Russia. That oil is then sold into the global marketplace, and anyone who’s buying that oil would be paying more for it or, if it doesn’t exist, would have to find an alternative source for it, he stated.
"So we have heard, when you talk about the Senate bill that was being proposed where there was a hundred percent tariffs on China and India, we did hear from a number of European countries – not in press releases but we heard from them – some concern about what that could mean,” Rubio added.
India Puts No Pause on Russian Oil
Last week, India stated it has not halted oil purchases from Russia in response to the US President's tariff threat and continues to buy based solely on economic considerations.
AS Sahney, Chairman of Indian Oil Corporation (IOC), the country's largest oil firm, has clarified, as quoted by Economic Times that there is "no pause" on Russian oil imports, and that India's intent to continue buying Russian oil remains unchanged.
In response to the steep US tariffs, the Ministry of External Affairs had said that the targeting of India is unjustified and unreasonable.
