While expressing concern over India's energy dependence on Russia, AJC emphasised India’s geopolitical importance. "We regret energy-hungry India's reliance on Russian oil-but India isn't responsible for Putin's war crimes, is a sister democracy and an increasingly important strategic partner of the United States, and has a crucial role to play in Great Power competition. It's time to reset this vital relationship."
The response came after U.S. Trade Adviser Peter Navarro told Bloomberg TV that "the taxpayers lose because we got to fund Modi's war," linking India's purchase of Russian oil to the Ukraine conflict. When asked if he meant to say "Putin's war," Navarro doubled down: "I mean Modi's war, because the road to peace runs, in part, through New Delhi."
Navarro also criticised India's stance on trade and sovereignty. "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, okay, act like one."
Navarro's remarks came the same day that new U.S. tariffs on Indian goods took effect, raising duties to 50 percent across key sectors. The measures, which include a 25 per cent penalty tied to India's military and energy trade with Russia, are among the highest tariffs imposed by Washington on any country. India has condemned the tariffs as unfair and reiterated its commitment to securing the best energy deals for its 1.4 billion citizens.
India's crude imports from Russia have surged from under 2 per cent before the Ukraine invasion to nearly 40 per cent, making Moscow its top oil supplier. New Delhi has pointed to the absence of similar U.S. penalties against China - the largest importer of Russian oil - or the European Union, which continues broad trade ties with Russia.
Despite the cancellation of planned trade negotiations earlier this week, Treasury Secretary Scott Bessent has signaled optimism about salvaging the relationship. "I do think India’s the world’s largest democracy; the US is the world’s largest economy. I think at the end of the day we will come together," Bessent said in an interview with Fox Business.