Navarro portrayed India as a “laundromat for the Kremlin,” alleging that discounted Russian crude is processed by Indian refiners and sold globally at a substantial markup, with profits reportedly enriching an elite caste while financing Russia’s war in Ukraine. “You’ve got Brahmins profiteering at the expense of the Indian people. We need that to stop,” he asserted, framing the new tariffs as a means to halt this perceived exploitation.
In parallel venues, including Bloomberg TV, he proposed that a rollback of the tariffs to 25 percent could occur if India ceased its imports of Russian oil. Navarro argued that such oil purchases indirectly support Moscow’s war efforts and force American taxpayers to foot the bill through aid to Ukraine.
Earlier in August, the United States had raised tariffs on Indian goods from 25 percent to 50 percent, explicitly linking the decision to India’s reliance on cheap Russian imports—now accounting for about 42 percent of its oil imports—as a mechanism to deter trade practices deemed detrimental to U. S. and Ukrainian interests. Experts caution that these punitive tariffs could curtail Indian economic growth by up to 0.8 percentage points annually, particularly affecting sectors such as engineering, diamonds, textiles and furniture. India is exploring alternatives by promising subsidy support to exporters and diversifying markets toward Latin America, the Middle East and China.
Opponents of Navarro’s rhetoric have described his remarks as inflammatory and unsubstantiated. Sundar Karthikeyan, in a Letter to the Financial Times, criticised Navarro’s framing of India as an oil laundering hub, noting that India’s purchases comply with global regulations like the G7 price cap, and pointing out that many Western nations still trade energy with Russia. Likewise, commentary from the Financial Times highlights the selective targeting of India amid stalled trade negotiations, arguing that other major buyers of Russian energy have thus far escaped similar reprisals—a fact that could weaken trust in the India–U. S. strategic partnership.
The tensions are unfolding amidst a broader 2025 diplomatic and trade crisis between the two countries. The imposition of high tariffs has been met with stern condemnation from New Delhi, which insists its energy strategy is driven by affordable supply needs, not geopolitics. The crisis has sparked fears that longstanding strategic collaboration—especially within frameworks such as the Quad—could unravel, driving India toward strengthened ties with BRICS partners.