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‘Why are Americans paying for AI in India?’: Trump trade adviser Navarro fires fresh salvo

US India trade tensions: Speaking to former White House chief strategist Steve Bannon on “Real America Voice”, Navarro referred to US based AI platforms, consuming domestic electricity and catering to a global audience.

3 min readJan 19, 2026 12:18 AM IST First published on: Jan 18, 2026 at 06:05 PM IST
Trump AI Trade Row: navarro on indiaTrump AI Trade Row: Navarro, in the interview, signalled a policy action which the Trump administration could initiate considering the rising power costs. (AP Photo)

Trump AI Trade Row: US President Donald Trump’s trade advisor Peter Navarro has sparked fresh controversy, questioning why American resources are being used to support artificial intelligence (AI) services in India.

Speaking to former White House chief strategist Steve Bannon on the podcast “Real America Voice”, Navarro referred to US-based AI platforms such as ChatGPT consuming domestic electricity and catering to a global audience, particularly in India. The Trump administration’s trade advisor said that it is a trade-related concern.

Referring to OpenAI’s ChatGPT, Navarro said: “Why are Americans paying for AI in India? ChatGPT operates on US soil and uses American electricity, servicing large users of ChatGPT in India and China and elsewhere around the world.”

‘Can expect strong action from President Trump’

Navarro, in the interview, signalled a policy action which the Trump administration could initiate considering the rising power costs which is directly linked to the rapid growth 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,” the White House trade adviser said.

His comments come amid trade talks between Washington and New Delhi after a chill in ties as Trump administration imposed 50 per cent tariff on Indian imports. This included a 25 per cent tariff over New Delhi’s continued purchase of Russian oil.

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‘India fuelling Russia’s war’

Navarro had earlier claimed that India was fuelling Russia’s war in Ukraine by purchasing the discounted oil from Moscow.

“When India buys Russian oil at a discount and then Indian refiners in partnership in India with Russian refiners make that and sell it at a premium to the rest of the world, Russia uses the money it gets to fund its war machine, kill more Ukrainians,” he had said.

Trump govt moves to rein in AI-related electricity costs

On Friday, the Trump administration had announced that it would work with states to ensure that rapid growth in the AI segment doesn’t end up raising the cost of electricity for millions of Americans. The average electricity bill soared by 5 per cent in October compared with the same period last year, according to the Energy Information Administration.

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