US President Donald Trump’s trade adviser, Peter Navarro, called India the "Maharaj" of tariffs and accused New Delhi of running a "profiteering scheme" by continuing to buy Russian oil. He said he expects the new 50 per cent tariffs on Indian imports to take effect as planned next week.

"I see that taking place," Navarro told reporters outside the White House when asked about the 25 per cent punitive tariffs on India that are scheduled to begin on August 27.

"Prior to Russia's invasion of Ukraine in February 2022, India virtually bought no Russian oil...It was like almost one per cent of their need. The percentage has now gone up to 35 per cent...They don't need the oil. It's a refining profit-sharing scheme. It's a laundromat for the Kremlin. That's the reality of that," Navarro said.

The sharp criticism from Navarro came after India signalled it would continue purchasing Russian oil. Facing the steep 50 per cent levy, the Indian government has restated its close friendship with Russia and has also tried to reduce tensions with China in recent weeks.

During his visit to Moscow, External Affairs Minister S Jaishankar answered questions about American criticism of India’s trade with Russia and said the Indian government is "perplexed" by Washington’s threats since the US itself had asked India to buy Russian oil to help balance global energy markets.

"We are a country where, actually, the Americans said for the last few years that we should do everything to stabilise the world energy markets, including buying oil from Russia," he said.

India has sharply increased oil imports from Russia since the invasion of Ukraine in 2022, when the G7 countries placed a 60 dollar per barrel price cap on Russian crude in order to reduce Moscow’s energy revenues. The Trump administration argues that these purchases are helping to finance Russia’s war, and the 50 per cent tariffs on Indian products will be among the highest imposed on any country.