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‘Why Are Americans Paying For AI In India?’: Trump’s Trade Advisor Raises Data Centre Energy Costs
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Peter Navarro questions US electricity powering AI services like ChatGPT for users in India, raising trade and energy concerns amid rising US electricity costs.
Peter Navarro questions US electricity powering AI services like ChatGPT for users in India, raising trade and energy concerns amid rising US electricity costs. (REUTERS/Kent Nishimura
US President Donald Trump’s trade adviser, Peter Navarro, has ignited a fresh political and economic debate by questioning why American electricity and infrastructure are being used to power artificial intelligence services that cater to users overseas, particularly in India.
Speaking on the podcast Real America Voice with former White House chief strategist Steve Bannon, Navarro raised concerns about US-based AI platforms operating domestically while serving millions of users abroad. He singled out OpenAI’s popular chatbot ChatGPT, arguing that its growing global footprint has trade and energy implications for the United States.
“Why are Americans paying for AI in India?” Navarro asked during the discussion. “ChatGPT operates on US soil and uses American electricity, servicing large users of ChatGPT in India and China and elsewhere around the world.” According to him, this raises fundamental questions about whether US taxpayers and consumers should bear the cost of powering AI systems that primarily benefit foreign markets.
Focus on electricity costs and data centres
Navarro’s remarks come amid mounting concern in Washington over the rapid expansion of AI data centres, which require vast amounts of electricity to run powerful servers around the clock. He suggested that the boom in AI infrastructure is already contributing to higher power prices for American households.
“We’re looking very, very carefully at this whole problem of AI data centres driving up the cost of electricity for Americans,” Navarro said. “You can expect strong action from President Trump on this. So keep an eye on that.”
Trade tensions with India in the backdrop
Navarro’s statements come at a sensitive moment in US–India relations. Washington and New Delhi are engaged in trade talks following a downturn after the Trump administration imposed a steep 50% tariff on Indian imports. This included a 25% additional duty linked to India’s continued purchase of Russian oil, a move the US has criticised amid the war in Ukraine.
Navarro has been one of the most vocal critics of India’s energy policy. In earlier remarks, he accused New Delhi of indirectly financing Russia’s war effort in Ukraine by buying discounted Russian crude and reselling refined products at higher prices on the global market.
“When India buys Russian oil at a discount and then Indian refiners, in partnership with Russian refiners, sell it at a premium to the rest of the world, Russia uses that money to fund its war machine,” Navarro had said.
US government moves on AI and energy
Against this backdrop, the Trump administration on Friday announced plans to work with US states to ensure that the rapid growth of the AI sector does not result in higher electricity bills for millions of Americans. According to data from the Energy Information Administration, the average electricity bill in the US rose by 5% in October compared with the same period last year, heightening political sensitivity around energy costs.
AI companies have increasingly come under scrutiny for the environmental and economic impact of large-scale data centres, which consume enormous amounts of power and water.
Washington D.C., United States of America (USA)
January 18, 2026, 20:04 IST
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KARACHI: The Pakistan Stock Exchange rallied on Thursday after Saudi Arabia assured Pakistan of facilitating crude oil shipments through the Red Sea port of Yanbu Port, easing concerns over potential fuel supply disruptions.
The benchmark KSE-100 Index climbed sharply during the trading session, rising 4,439.93 points (2.85%) to reach an intraday high of 160,217.14 points.
Market Recovery
Analysts attributed the market rebound to renewed institutional buying and improving investor sentiment after Saudi assurances on oil supplies.
Market expert Ahsan Mehanti, CEO of Arif Habib Commodities, said easing fuel supply concerns played a key role in the recovery.
He added that rising global crude prices, expectations of a new International Monetary Fund loan tranche for Pakistan, and positive economic indicators also boosted investor confidence.
Alternative Oil Route
Pakistan sought an alternative supply route after Iran announced the closure of the Strait of Hormuz, a crucial global oil transit corridor.
Federal Petroleum Minister Ali Pervaiz Malik held talks with Nawaf bin Said Al-Malki, requesting Saudi support for uninterrupted energy supplies.
Saudi authorities reportedly assured Pakistan that oil shipments could be routed through Yanbu, and one crude vessel has already been prepared for dispatch.
Global Oil Market Impact
Oil prices continued to rise amid tensions in the Middle East conflict involving Iran, Israel and the United States.
Brent crude: up 3.26% to $83.99 per barrel
West Texas Intermediate (WTI): up 3.70% to $77.42 per barrel
Energy markets remain volatile as shipping disruptions threaten supply through the Strait of Hormuz, a route that handles nearly 20% of global oil trade.
Analysts say the Saudi assurance helped calm fears about Pakistan’s energy supply chain, contributing to the strong recovery at the PSX.
Business
Asian stocks today: Markets inch higher mirroring Wall Street gains; Kospi jumps 10%, Nikkei up 1,400 points – The Times of India
Asian stocks inched higher on Thursday, after days of trading in red amid ongoing Middle East tensions. This comes as equities were lifted by a rebound on Wall Street as oil prices paused their recent spike and economic updates painted a more positive picture of the American economy. In South Korea, Kospi hit a pause on its downward rally to add a whopping 10% or 513 points, to reach 5,606. Japan’s Nikkei 225 also climbed 2.7% to 55,713. Hong Kong’s HSI also traded in green, rising 353 points to 25,603 as of 9:10 am. Shanghai and Shenzhen added 0.9% and 1.7% respectively. Gains elsewhere in the region were more modest. Australia’s S&P/ASX 200 added 0.3% to 8,927.20, while New Zealand’s benchmark index moved 0.9% higher. In contrast, US futures indicated a subdued start ahead. Futures linked to the Dow Jones Industrial Average were almost unchanged, while S&P 500 futures ticked up 0.2%. The S&P 500 advanced 0.8% on Wednesday, clawing back much of the decline seen since the onset of the Iran conflict. The Dow Jones Industrial Average rose 0.5%, and the Nasdaq Composite outperformed with a 1.3% gain. Globally, market sentiment has remained sensitive to developments in the Middle East, with oil price swings continuing to steer trading direction. Crude prices eased during Wednesday’s session. Brent crude briefly moved above $84 a barrel before settling at $81.40, roughly matching the previous day’s level. US benchmark crude edged up 0.1% to finish at $74.66 per barrel. By early Thursday, however, oil was on the rise again. Brent crude climbed 2.4% to $83.32 per barrel, while U.S. benchmark crude jumped 2.5% to $76.53 per barrel.
It is also the first time the target has been lowered since it was cut to “around 5%” in 2023.
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