‘Road to peace runs through New Delhi,’ says White House Trade Adviser

WASHINGTON: Despite sharp criticism for purchasing Russian oil, White House Trade Adviser Peter Navarro on Thursday (local time) praised India’s leadership and highlighted its key role in bringing the Ukraine-Russia conflict to an end.

“The road to peace runs through New Delhi,” said Navarro while calling Prime Minister Narendra Modi “a great leader”

Navarro argued that India doesn’t need Russian oil, pointing out that before the Ukraine invasion in February 2022, India imported less than 1 per cent of its oil from Russia. In contrast, now it imports around 35-40 per cent.

“Prior to Russia’s invasion of Ukraine in February 2022, India bought virtually no Russian oil… The argument now, when this percentage has gone up to 30-35 per cent, that somehow they need Russian oil, is nonsense… Russian refiners have gotten in bed with Italian refiners in a game in which they get cheap Russian crude at a discount. Then they make refined products, which they sell at premium prices into Europe, Africa and Asia,” he said.

He described India’s barriers as “higher tariffs, Maharaja tariffs, higher non-tariff barriers”, arguing that they contributed to a “massive” US trade deficit that “hurts American workers” and “hurts American businesses.”

“In India, 25% tariffs were put in place because they cheat us on trade. Then 25 per cent because of the Russian oil… They have higher tariffs, Maharaja tariffs… We run a massive trade deficit with them. So that hurts American workers and businesses. Then they use the money that they get from us when they sell us stuff to buy Russian oil, which then is processed by refiners, and they make a bunch of money there, but then the Russians use the money to build more arms and kill Ukrainians. So American taxpayers have to provide more aid, military style, to the Ukrainians. That’s insane, and President Trump sees that chessboard beautifully. In many ways, the road to peace runs through New Delhi,” Navarro said.

Novarro also claimed that India is cozying up to China’s President Xi Jinping, adding New Delhi of acting as a “laundromat for the Kremlin” by purchasing discounted Russian crude oil, refining it, and selling the products at a premium globally.

He said that this arrangement allows Russia to fund its war efforts in Ukraine, while India profits from the transactions. Meanwhile, Russian President Vladimir Putin noted during Alaska’s press conference with Trump on August 16 that bilateral trade between the two nations has increased by 20 per cent since Trump’s reinstatement as President.

“India doesn’t appear to want to recognise its role in the bloodshed… It’s cosying up to Xi Jinping (Chinese President). They (India) don’t need the (Russian) oil. It’s a refining profiteering scheme. It’s a laundromat for the Kremlin. I love India. Modi is a great leader, but please, India, look at your role in the global economy. What you’re doing right now is not creating peace. It’s perpetuating the war,” the White House trade advisor said.

Notably, his statements come after Nikki Haley, former US Ambassador to the United Nations, has emphasised the importance of treating India as a “prized free and democratic partner” in the global effort to counter China’s growing influence. In her opinion piece on Newsweek, she warned that damaging the 25-year momentum in US-India relations would be a “strategic disaster.”

She urged Donald Trump to “reverse the downward spiral” and hold direct talks with PM Modi. “The sooner the better,” she said.

Haley believes India is the only country that can serve as a counterweight to Chinese dominance in Asia, making it crucial for the US to maintain a strong partnership.

Moreover, renowned economist Jeffrey Sachs has strongly criticised the US administration’s decision to impose steep tariffs on India, calling them “bizarre” and “very self-destructive of US foreign policy interests”.

In a recent interview, Sachs expressed concerns that these tariffs will undermine years of efforts to strengthen US-India relations. Sachs described the tariffs as “not a strategy, but sabotage” and the “stupidest tactical move in US foreign policy”, which has unified the BRICS countries like never before.

Meanwhile, Chinese Ambassador to India, Xu Feihong, has expressed opposition to the US decision to impose 50% tariffs on Indian goods, warning that “silence or compromise only emboldens the bully”. He emphasised that China will firmly stand with India to uphold the multilateral trading system with the World Trade Organisation (WTO) at its core.

Xu criticised the US for using tariffs as a bargaining chip, despite benefiting greatly from free trade in the past. He noted that tariff wars and trade wars are disrupting the global economic and trade system, with power politics and the law of the jungle prevailing.

Xu emphasised the importance of China and India strengthening cooperation to help developing countries overcome difficulties and safeguard international fairness and justice.

Trump announced 25 per cent tariffs on Indian goods in July, even as there were hopes of an interim India-US trade deal that would have otherwise helped avoid elevated tariffs. A few days later, he imposed another 25 per cent tariff, taking the total to 50 per cent, citing India’s continued imports of Russian oil. (ANI)