Trump Trade Advisor Peter Navarro Questions US Power Use for AI Services in India

US President Donald Trump’s trade advisor Peter Navarro has triggered fresh controversy by questioning why American resources are being used to support artificial intelligence (AI) services for users in India and other countries.

Speaking on the “Real America Voice” podcast with former White House chief strategist Steve Bannon, Navarro argued that US-based AI platforms such as OpenAI’s ChatGPT rely on American electricity while serving a large international user base.

“Why are Americans paying for AI in India?” Navarro asked, adding that ChatGPT operates on US soil, consumes domestic power, and provides services to major users in India, China, and elsewhere around the world. He described this as a trade-related concern, linking it directly to the growing strain on US energy infrastructure.

Possible Policy Action on AI Power Consumption

Navarro indicated that the Trump administration is closely examining the impact of AI data centres on electricity pricesin the US and signalled that corrective action may follow.

“We’re looking very carefully at this whole problem of AI data centres driving up the cost of electricity for Americans. You can expect strong action from President Trump on this,” Navarro said, urging people to closely watch upcoming policy moves.

Backdrop of US-India Trade Tensions

Navarro’s remarks come at a sensitive time, as trade negotiations continue between Washington and New Delhifollowing a downturn in bilateral ties. The Trump administration recently imposed 50% tariffs on Indian imports, including a 25% penalty linked to India’s continued purchase of Russian oil.

Navarro has previously accused India of indirectly financing Russia’s war in Ukraine by buying discounted Russian crude and exporting refined products at higher prices.

“When India buys Russian oil at a discount and sells refined products at a premium, Russia uses that revenue to fund its war machine,” Navarro had claimed.

US Moves to Control AI-Driven Power Costs

On Friday, the Trump administration announced that it would coordinate with US states to ensure that the rapid expansion of AI infrastructure does not push electricity costs higher for American households.

According to the Energy Information Administration, average electricity bills rose by 5% in October compared with the same period last year, intensifying concerns over energy demand from data centres.