Peter Navarro, trade adviser to US President Donald Trump, has renewed his criticism of India, questioning why Americans are paying for artificial intelligence (AI) services being used in India.
His remarks come amid tensions in India–US relations, which began after Trump imposed a 50% tariff on New Delhi, including an additional 25% duty on its purchase of Russian crude.
In an interview on Real America's Voice on Saturday, Navarro said,"…It’s like, why are Americans paying for AI in India? Chat GPT (is) operating on US soil, using American electricity, servicing large users of Chat GPT, for example, in India and China and elsewhere around the world. So that's another issue that's got to be dealt with."
In the interview, Navarro signalled a potential policy move by the Trump administration, citing rising power costs directly linked to the rapid expansion of AI data centres.
"We’re looking very very carefully at this whole problem of AI data centers driving up the cost of electricity for Americans. You can expect strong action from President Trump on this. So keep an eye on that," he said.
Navarro's comments came as ties between New Delhi and Washington are reeling under strain on several other issues apart from tariffs, including Trump's claim of ending the India-Pakistan conflict in May last year and Washington's new immigration policy.
Punitive and retaliatory tariffs, US claims of mediating tensions between India and Pakistan, and tougher immigration policies -- including mass deportation of Indian nations and curbs on H-1B visas -- strained ties, even as both sides sought to preserve the broader strategic partnership.
Last year, the White House trade adviser repeatedly criticised India over its purchases of Russian oil and high tariffs, calling the country the "Maharajah of tariffs." He also described India’s Russian oil imports as "blood money", adding that New Delhi had not bought oil from Moscow in large quantities before the Ukraine conflict.
India has maintained that, like any major economy, it will take all necessary measures to safeguard its national interests and economic security. Defending its decision to purchase oil from Russia, India said its choices are guided by the global situation and the best available market deals to secure the country’s energy needs.
In an earlier diatribe targeting the BRICS nations, Navarro had said the "bottom line" is that none of the countries in the grouping can "survive if they don't sell to the United States. And when they sell to the United States, their exports, they're like vampires sucking our blood dry with their unfair trade practices."