Navarro’s remarks came in a Bloomberg TV interview, where he insisted that India’s oil purchases are unwittingly funding Russia’s military campaign, siphoning U. S. resources in the form of increased support for Ukraine. “Everyone in America loses… and then the taxpayers lose because we’ve got to fund Modi’s war,” he stated, laying the blame squarely on Delhi’s geopolitical choices. He added, “India can get 25 per cent off tomorrow if it stops buying Russian oil.”
India’s reliance on discounted Russian crude has surged; as of earlier this year, 42 per cent of its oil imports originate from Russia—up from under 1 per cent before the war—with average purchases of 1.73 million barrels per day between January and July. Firms like Reliance Industries and Nayara Energy account for the bulk of these imports. New Delhi insists these energy deals are commercially driven, not politically motivated, aimed at ensuring affordability for its 1.4 billion population.
This tariff escalation follows a year of faltering talks between the two nations, which initially aimed at securing a $500 billion bilateral trade deal by 2030. Sticking points such as agricultural and dairy access, India’s higher tariff regime, and refusal to cut Russian energy ties derailed negotiations. The first tranche of 25 per cent tariffs came into effect in early August; the additional 25 per cent on top of that came into force on 27 August.
The economic fallout is expected to be significant. U. S. tariffs now hit over half of India’s exports to the U. S.—worth around $87 billion—and could slash orders by up to 30 per cent. Sectors such as textiles, gems, and furniture are likely to be hit hardest, though essential industries like pharmaceuticals remain exempt for the time being. Analysts warn India’s GDP growth could shrink by up to 0.8 percentage points over two years if tariffs persist.
India’s response has been firm. Authorities have denounced the U. S. actions as unjustified, arguing that energy security is paramount. The Ministry of External Affairs has reiterated that India must buy affordable oil to sustain its population’s needs, emphasising its right to pursue an independent foreign and economic policy.
Strategically, the tariff showdown appears to be altering New Delhi’s diplomatic orientation. There are signs of recalibration, with Indian efforts to deepen ties with China and broader BRICS partners gaining pace. Prime Minister Modi’s upcoming visit to China—his first in seven years—signals a possible shift toward greater engagement in the multipolar world structure. Observers see this as India asserting strategic autonomy amid mounting pressure.