Peter Navarro, the senior counsellor for trade and manufacturing to US President Donald Trump, has yet again stirred the hornet’s nest.

After calling the Russia-Ukraine conflict ‘Modi’s war‘, he has written a 9-tweet thread on Thursday (28th August) justifying a whopping 50% tariffs on most US imports from India.

Navarro claimed, “This isn’t just about India’s unfair trade—it’s about cutting off the financial lifeline India has extended to Putin’s war machine.”

It must be mentioned that Russia is both the second-largest crude oil producer and exporter in the world. After the outbreak of the Russia-Ukraine conflict, crude oil prices rocketed to $137 per barrel.

India, which has about 1.4 billion people, had to secure its energy needs. There are no sanctions on Russian oil by the United States, G7 countries and the European Union (EU), unlike Iranian oil and Venezuelan oil.

Only a price cap was imposed on Russian oil and petroleum prices to prevent ‘war profiteering’ while not disrupting global supplies.

India thus did not violate any international norms through its purchase of Russian oil, as it adhered to the price cap.

In the absence of India’s purchase of Russian oil, global crude oil prices could become $200 per barrel. This steep hike in fuel prices would affect all nations, not just India.

The Modi government’s decision helped keep global crude oil prices stable and balanced. And this fact has been acknowledged by at least 3 US officials, including US Treasury Secretary Janet Yellen, Ambassador Eric Garcetti and diplomat Geoffrey Pyatt.

1/ President Trump’s 50% tariffs on Indian imports are now in effect.

This isn’t just about India’s unfair trade—it’s about cutting off the financial lifeline India has extended to Putin’s war machine. 🧵 pic.twitter.com/bwLaL9dBTv

— Peter Navarro (@RealPNavarro) August 28, 2025

In another tweet, Peter Navarro alleged, “India uses our dollars to buy discounted Russian crude.”

In reality, India purchases Russian crude oil from third countries, where transactions are carried out not in US dollars but other currencies like the United Arab Emirates Dirham (AED).

At the same time, the United States has never previously objected to the purchase of Russian oil by India, as it prevented crude oil prices from shooting up to $200 per barrel.

If the US wanted countries to stop purchasing Russian oil, it could have imposed sanctions on Russian crude oil like it did in cases of Venezuela and Iran.

But this did not stop Peter Navarro from claiming, “Indian refiners, with their silent Russian partners, refine and flip the black-market oil for big profits on the international market – while Russia pockets hard currency to fund its war on Ukraine.”

The categorisation of Russian crude oil as ‘black market oil’ is false because its purchase is not restricted by sanctions (besides a price cap). India adheres to all international frameworks and does not purchase LNG and LPG from sanctioned projects in Russia.

3/ Indian refiners, with their silent Russian partners, refine and flip the black-market oil for big profits on the international market – while Russia pockets hard currency to fund its war on Ukraine. pic.twitter.com/TOOMFfFSYD

— Peter Navarro (@RealPNavarro) August 28, 2025

The senior counsellor for trade and manufacturing to US President Donald Trump claimed that India’s import of Russian oil is not driven by ‘domestic demand’ but illicit profiteering.

There is no evidence for this claim. India has to fend for its 1.4 billion people and mitigate domestic demand. After the outbreak of the Russia-Ukraine war, there was a massive jump in crude oil prices.

Oil Public Service Undertakings (PSUs) in India purchased Russian oil and suffered cumulative losses of $2.5 billion between April 2022 and January 2023 to ensure that domestic fuel prices remain stable.

The Modi government framed rules that mandated private refineries to sell at least 50% of their exported volume of petrol back into the domestic market. A similar 30% cap was levied on the export of diesel.

At the same time, an export tax was imposed to prevent massive profiteering. These strategic decisions helped in stabilising fuel prices not just in India but in the world.

It must be mentioned that around that time, OPEC+ countries had cut down on crude oil production by 5.86 million barrels per day. Without India’s timely intervention and key decisions, fuel prices could have spiralled out of control.

In one of his tweets, Peter Navarro claimed, “India’s Big Oil lobby has turned the largest democracy in the world into a massive refining hub and oil money laundromat for the Kremlin.”

The fact of the matter is that India has been the 4th largest refiner and exporter of petroleum products not since 2022 but for several decades. India exports petroleum products to 150 nations.

Importantly, most of the crude oil purchased from Russia at ‘discounted prices’ was consumed domestically after being processed in one of the country’s 23 refineries.

While it is true that Europe, Africa, and Asia purchased refined crude oil and fuels from India, they did so of their own accord as part of being in a global supply chain. The transactions between nations thus cannot be classified as ‘laundering.’

5/ India’s Big Oil lobby has turned the largest democracy in the world into a massive refining hub and oil money laundromat for the Kremlin.

Indian refiners buy cheap Russian oil, process it, and export fuels to Europe, Africa, and Asia—shielded from sanctions under the pretense… pic.twitter.com/rGbWGbqqrT

— Peter Navarro (@RealPNavarro) August 28, 2025

In another tweet, Peter Navarro claimed, “India now exports over 1 million barrels a day in refined petroleum—more than half the volume of Russian crude it imports.“

Russian oil comprises about 30-35% of the total oil import of India. And 70% of all refined petroleum products are utilised to meet domestic demand. Hence, claims by the senior counsellor for trade and manufacturing to US President Donald Trump are highly exaggerated.

Having said that, resale or export of refined Russian crude oil and petroleum products was never under the ‘price cap’ imposition. It was recently in July 2025 that a few restrictions were introduced on products refined from Russian crude oil.

European Union’s total import of petroleum products from India has increased to 221 Million Metric Tonnes (MMT) in the Financial year 2024-2025. The EU could have suspended the import of fuel refined from Russian crude, but it did not. France, Netherlands and Belgium remain the top importers of petroleum products from India.

Peter Navarro raked up the issue of ‘trade deficit’ in the hopes of winning brownie points on social media through anti-India rhetoric.

He brazened out, “We run a $50-billion trade deficit with India—and they’re using our dollars to buy Russian oil. They make a killing and Ukrainians die.“

The fact is US runs larger trade deficit with European Union, Mexico and even ‘arch rival’ China. As stated earlier, India does not use USD to purchase Russian oil (as it is procured by refineries from third countries).

Ironically, the United States purchases enriched uranium from Russia and by the dubious argument of Peter Navarro, the country is funding Putin’s war chest.

Coincidentally, the current US imports from Russia stand at a whopping $3 billion in 2024. In August this year, Russian President Vladimir Putin claimed that the country’s bilateral trade with the US has increased by 20%.

7/ While the United States pays to arm Ukraine, India bankrolls Russia even as it slaps some of the world’s highest tariffs on U.S. goods, which in turn punishes American exporters.

We run a $50-billion trade deficit with India—and they’re using our dollars to buy Russian oil.… pic.twitter.com/X2AK5u8z33

— Peter Navarro (@RealPNavarro) August 28, 2025

In one tweet, Peter Navarro accused India of ‘strategic freeloading.’ He claimed, “India continues to buy Russian weapons—while demanding that U.S. firms transfer sensitive military tech and build plants in India.”

India, being a sovereign country, can choose to purchase weapons from any partner nation. Russia has been a reliable ally of India and thus remains the top supplier of arms and ammunition.

India also procures weapons from nations like France, Israel and the United States. India is the only major power in Asia that can counter the threat of China militarily.

India and the US are part of QUAD and Indo-Pacific defence cooperation. Given that nothing is free in diplomacy and trade, there is no concept of ‘strategic freeloading’ in India-US bilateral ties.

9/ The Biden admin largely looked the other way at this madness.

President Trump is confronting it.

A 50% tariff—25% for unfair trade and 25% for national security—is a direct response.

If India, the world’s largest democracy, wants to be treated like a strategic partner of… pic.twitter.com/XAt6aa4JLA

— Peter Navarro (@RealPNavarro) August 28, 2025

The senior counsellor for trade and manufacturing to US President Donald Trump has justifed the steep 50% tariffs imposed on US imports from India.

He alleged, “The road to peace in Ukraine runs through New Delhi.” The truth is that India has consistently called for peace between Ukraine and Russia.

Prime Minister Narendra Modi has himself said in an interview, “I have a close relationship with Russia and Ukraine alike,” he said. “I can sit with President Putin and say that this is not the time for war. And I can also tell President Zelensky, in a friendly way, that brother, regardless of how many people stand with you in the world, there will never be a resolution on the battlefield.”

India and the government at its helm have always advocated for peace and diplomacy. The irony is that US which purchases urnaium from Russia is levying 50% tariffs on India for procuring crude oil from the same country and keeping global markets stable.

This is nothing but a concerted attempt by the Trump administration to scapegoat India under false pretence.