Trump Adviser Calls India a ‘Laundromat for Kremlin’ as 25% Tariffs Hit Russian Oil Trade

US President Donald Trump’s trade adviser Peter Navarro has accused India of acting as a “laundromat for the Kremlin,” intensifying tensions over Washington’s 25% tariffs on Indian goods tied to Russian oil imports.

Speaking on Friday, Navarro alleged that Indian refiners are purchasing discounted Russian crude, processing it, and selling refined products at premium prices worldwide, thereby “fuelling Moscow’s war machine in Ukraine.”

“Prior to Russia’s invasion in February 2022, India bought virtually no Russian oil. The argument now, when this percentage has gone up to 30–35%, that somehow they need Russian oil, is nonsense,” Navarro said.

‘Maharaja tariffs’ and double penalties

Navarro defended Washington’s two-tiered trade penalties — 25% for India’s long-standing “higher non-tariff barriers” and another 25% over Russian oil purchases.

“In India, 25% tariffs were put in place because they cheat us on trade. Then 25% because of the Russian oil... That hurts American workers and businesses,” Navarro claimed, adding that American taxpayers end up funding aid to Ukraine while India profits from discounted crude.

He branded New Delhi’s refining strategy a “profiteering scheme” and directly linked it to Moscow’s weapons production:

“India doesn’t appear to want to recognise its role in the bloodshed... It’s cosying up to Xi Jinping. They don’t need the oil. It’s a laundromat for the Kremlin.”

While describing Prime Minister Narendra Modi as “a great leader,” Navarro appealed to New Delhi to reconsider its stance:

“What you’re doing right now is not creating peace. It’s perpetuating the war.”

Critics warn of foreign policy fallout

Navarro’s comments sparked debate in Washington. Former US ambassador Nikki Haley urged Trump to strengthen ties with India as a key partner against Beijing, while economist Jeffrey Sachs called the tariffs “bizarre” and “very self-destructive,” warning they could drive BRICS nations closer together.

India hits back at US accusations

India has rejected the charges. External Affairs Minister S. Jaishankar called the argument “flawed,” pointing out that China is Russia’s largest crude buyer and the EU remains Moscow’s biggest LNG customer.

“We are very perplexed at the logic of the argument... We are a country where the Americans have said for the last few years that we should do everything to stabilise the world energy market, including buying oil from Russia,” Jaishankar said.

The Ministry of External Affairs issued a statement reaffirming that India’s imports are guided by market factors and national energy security needs for 1.4 billion people, describing the additional tariffs as “extremely unfortunate” and vowing to “take all actions necessary to protect national interests.”