Americans paying for AI in India? Trump's adviser Peter Navarro claims foreign buyers fueling US inflation

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White House adviser Peter Navarro questioned why the people of the United States should pay for the artificial intelligence (AI) services that companies provide in India and other similar countries. 

White House trade advisor Peter Navarro questioned why the Americans should pay for the AI services for clients in India, China, among other countries.
White House trade advisor Peter Navarro questioned why the Americans should pay for the AI services for clients in India, China, among other countries. (REUTERS)

White House trade advisor and US President Donald Trump's aide, Peter Navarro, claimed that the people of the United States are allegedly paying for the artificial intelligence (AI) services that companies provide in India, according to a telephonic interview with the former White House chief strategist Steve Bannon.

Peter Navarro questioned why the Americans should pay for the AI services which are being built and powered in the country to service clients in India, China, and other countries. The trade advisor also highlighted a risk of an inflation uptick driven by the foreign entities operating in the United States.

“Why are Americans paying for AI in India? ChatGPT operating on US soil, using American electricity, servicing large users of the company, for example, in India and China, and elsewhere around the world. That's another issue which needs to be dealt with, and don't forget there are water issues and farmland issues,” said Peter Navarro during his interaction with Steve Bannon at “Real America Voice” show.

Inflation risk

Peter Navarro also said that the foreign entities buying ownership of land in America pose a risk to heighten inflation in the US economy, as these buyers are allegedly paying 10 times more for farmland, a move which can fuel the domestic food prices in the country.

“They (foreign entities) are coming in and paying 10x on farmland, and if we are gonna fight food inflation, then we gotta wrap our heads around that,” said Peter Navarro.

According to the US Bureau of Labor Statistics data released earlier this month, the US consumer price index (CPI) inflation data was at 2.7% as of the 12-month period ending December 2025. The data for November 2025 also showed that the inflation was at 2.7%.

Mint reported earlier that the US inflation was at 3% as of the 12-month period ending September 2025.

Peter Navarro's tirade against India comes amid the raging 50% tariffs on all Indian imports to the United States and the delays over the potential bilateral trade agreement (BTA) deal between the two nations.

On India tariffs

On 8 September 2025, Peter Navarro called out India as the country which is “Maharajah of tariffs,” and how the country should come around at a point in the trade negotiations with the United States amid Trump's raging tariff war.

Donald Trump's aide described India as the ‘Maharajah’ of tariffs and said, “It's absolutely true. They have the highest tariffs in any major country in the world against the United States. We got to deal with that.”

“I think India must come around at some point. And if it doesn't, it's laying down with Russia and China, and that won't end well for India,” said Navarro in an interview with the ‘Real America’s Voice’ show.

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