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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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It is unusual for a senior figure at the Bank to be so forthright on market movements.
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Consumer confidence has fallen for the third consecutive month amid household “jitters” over rapid price rises, figures show.
GfK’s long-running consumer confidence index fell four points to minus 25 in April, following falls of two points and three points in March and February respectively.
The deepening concern was driven by perceptions of the UK economy, with a six-point slide in confidence for the next 12 months to minus 43, its lowest level since February 2023.
Confidence in personal finances over the coming year fell five points to minus four – one point lower than this time last year.
The major purchase index – an indicator of confidence in buying big ticket items – held steady, albeit at minus 18 but one point better than last April.
The only measure to improve was the savings index – often an indication that households are concerned about their finances and looking to build contingency funds – which is up five points to 32.
Neil Bellamy, consumer insights director at GfK, said: “Consumers really do have the jitters now.
“It is a year since we last saw a monthly drop of this size, and we have to go back to October 2023 to find the last time consumer confidence was lower.
“Everyone is grappling with rapid price rises, especially at the fuel pumps, which are taking a dent out of household budgets, and people know further price hikes are coming.
“Consumer confidence is deteriorating sharply, with fuel prices and threats of more energy price increases acting as constant reminders of inflation.
“While the Gulf crisis is intensifying pressures, much of the current strain reflects earlier domestic cost increases.
“How long can all this disruption and pain continue?”
People walk past a Nike store in New York City, on April 2, 2025.
Kylie Cooper | Reuters
Nike announced a new round of layoffs Thursday affecting approximately 1,400 employees across the organization, mostly concentrated in its technology department.
In a note from COO Venkatesh Alagirisamy, the company said the layoffs were part of Nike’s broader “Win Now” turnaround strategy aiming to reshape its technology team, modernize its Air manufacturing, move some of its Converse Footwear operations and integrate its materials supply chain work into its footwear and apparel supply chain teams.
“Collectively, these changes will result in a reduction of approximately 1,400 roles in global operations, with the majority in technology,” Alagirisamy wrote. “These reductions are very hard for the teammates directly affected and for the teams around them, too.”
A Nike spokesperson said the layoffs are about better positioning the organization for the current pace of sports and accelerating its growth. The layoffs affect employees across North America, Asia and Europe and represent less than 2% of the company’s total global head count.
“This is not a new direction,” Alagirisamy wrote. “It is the next phase of the work already underway.”
Affected employees will be notified beginning Thursday, Nike added.
CEO Elliott Hill has been working to turn Nike around after years of slumping sales. While Hill has made some initial progress, it’s come with some bumps in the road.
Nike announced 775 job cuts in January, primarily at its U.S.-based distribution centers, due to the company’s work in accelerating its use of automation. At the time, the company said the cuts are part of Nike’s goal to return to “long-term, profitable growth.”
Those layoffs came on top of a round of cuts last summer that affected less than 1% of Nike’s corporate staff as part of the company’s efforts to realign the business.
In its third fiscal quarter earnings report last month, the retailer warned that sales will continue to fall for the rest of the year, primarily led by an anticipated 20% decline in China during the current quarter.
— CNBC’s Jessica Golden contributed to this report.
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