Written by The Banking Post
The White House has renewed pressure on India to halt purchases of Russian crude, warning that the trade is undermining efforts to isolate Moscow over its war in Ukraine.
Trade adviser Peter Navarro said India’s oil imports were effectively financing Russia’s military campaign while strengthening New Delhi’s ties with both Moscow and Beijing.
“If India wants to be treated as a strategic partner of the US, it needs to start acting like one,” Navarro said. He argued that India was acting as a “global clearinghouse” for Russian oil, converting embargoed crude into exports and supplying Moscow with much-needed dollars.
Earlier this month, President Donald Trump slapped an additional 25 percent tariff on Indian goods, doubling the total levy to 50 percent. He cited New Delhi’s continued reliance on Russian energy despite repeated warnings from Washington.
India, however, insists it is being unfairly singled out. Officials in New Delhi argue that the US and European Union continue to buy Russian commodities in other forms, while expecting India to bear a heavier cost.
The tension comes as India and China move to cautiously expand their engagement. Prime Minister Narendra Modi is scheduled to meet Chinese President Xi Jinping later this month, while Chinese Foreign Minister Wang Yi arrives in New Delhi on Monday for talks on the disputed Himalayan border.
US officials have also raised concerns about transferring advanced military technology to India, pointing to its warming relations with China.
Meanwhile, a planned visit by US trade negotiators to New Delhi from August 25–29 has been called off, delaying discussions on a long-anticipated trade agreement. The cancellation dims hopes of relief from Washington’s latest tariffs, which were due to take effect on August 27.
