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Peter Navarro Criticizes US AI Infrastructure Supporting India: Trade Tensions Escalate
White House trade advisor Peter Navarro renewed criticism of India, questioning why American resources power AI services used by Indian consumers. His remarks highlight escalating US-India trade tensions amid Trump administration tariffs and ongoing disputes over energy policies and trade practices.
Why It Matters
Navarro's comments signal potential new areas of US trade policy scrutiny targeting AI infrastructure and energy consumption. The remarks reflect broader Trump administration strategy toward India regarding tariffs, Russian oil purchases, and trade imbalances, affecting bilateral relations and technology sector dynamics.
Timeline
3 Events
India Defends Energy Security and Trade Policies
January 2026
New Delhi maintains that, like any major economy, it will take all necessary measures to safeguard its national interests and economic security. India defends its Russian oil purchases as based on energy security and global market conditions.
Navarro Questions Why Americans Are Paying for AI in India
January 18, 2026
In an interview on Real America's Voice, White House trade advisor Peter Navarro questions why Americans are paying for AI in India. He argues that platforms like ChatGPT operate on US soil using American electricity while servicing large user bases in India and China, calling it an issue that needs to be addressed.
Trump Administration Imposes 50% Tariffs on Indian Imports
January 2026
US President Donald Trump slaps 50 percent tariffs on New Delhi, including a 25 percent additional duty for India's purchase of Russian crude oil, citing energy security concerns and indirect support for Moscow's war efforts.