‘Why Are Americans Paying for AI in India?’ Trump Aide Peter Navarro Targets India Amid US Trade Tensions

Fresh friction has emerged in India–US relations after Peter Navarro, a senior trade adviser in the administration of former US President Donald Trump, questioned why American resources were being used to support artificial intelligence services accessed by users in India.

Speaking during a media interaction, Navarro argued that AI platforms operating from the United States rely on American infrastructure and electricity while serving large international user bases, including India and China. He suggested that this arrangement raises economic and strategic concerns that Washington needs to address.

The comments come amid ongoing trade deadlock between New Delhi and Washington, with tensions heightened by steep tariffs imposed on Indian imports over New Delhi’s continued purchase of Russian oil. Negotiations for a broader trade agreement between the two countries remain stalled.

Navarro also raised concerns about foreign investment in US farmland, warning that inflated land purchases by overseas entities could drive up domestic food prices. He linked the issue to broader national security and economic risks.

This is not the first time Navarro has publicly criticised India. In previous remarks, he accused New Delhi of indirectly financing Russia’s war efforts through energy imports and repeatedly labelled India as a high-tariff economy. He has defended the tariff measures as necessary for protecting US national interests.

India has firmly rejected such claims. New Delhi has maintained that its energy purchases are determined by global market conditions and national security considerations. Indian officials have also described the tariffs as unfair and questioned why India is being singled out when other major economies continue similar trade practices.

The latest remarks underline growing unease in Washington over global technology flows and trade imbalances, even as India remains one of the fastest-growing markets for artificial intelligence tools such as OpenAI’s ChatGPT.

As trade and technology increasingly intersect, the episode highlights the evolving complexity of economic diplomacy between the world’s two largest democracies.