WASHINGTON: A senior White House adviser has described Russia’s war in Ukraine as “Modi’s war”, stepping up pressure on New Delhi to stop oil imports from Moscow, as sweeping 50 percent US tariffs on Indian goods came into effect on Wednesday.
The 50 percent tariffs, among the highest in the world, include a 25 percent penalty for the purchase of weapons and oil from Russia which, the US claims, is a key source of funds for its war in Ukraine.
India has called the tariffs unfair and vowed to continue purchasing Russian oil.
Russia, which supplied less than 2 percent of India’s crude before the Ukraine war started in February 2022, now accounts for 35 percent to 40 percent of New Delhi’s oil imports, making it the largest source.
But India has pointed out that the US has not imposed similar additional tariffs on the European Union, which still conducts a huge amount of trade with Russia.
US Trade Adviser Peter Navarro, in an interview with Bloomberg TV, said that the US loses if because of India.
“Everybody in America loses because of what India is doing. The consumers and businesses and everything lose, and workers lose because India’s high tariffs cost us jobs, factories and income and higher wages. And then the taxpayers lose because we have to fund Modi’s war,” Navarro was quoted as saying.
When asked if he actually meant “Putin’s war” instead, Mr Navarro said: “I mean Modi’s war, because the road to peace runs, in part, through New Delhi.”
Navarro then went on to add, “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.”
The US tariffs of 50 percent on goods from India will disrupt millions of livelihoods across the South Asian country’s industries.
The tariff setback has sent the Indian government into firefighting mode. New Delhi has said the immediate impact on Indian exports appears limited, but the ripple effects on the economy pose challenges that require immediate solutions.
Earlier this month, Indian Prime Minister Narendra Modi promised to cut taxes to mitigate the impact of tariffs.
