US Urges G7 to Target China and India with Tariffs in Russia Strategy

U.S. Urges G7 to Impose Tariffs on China and India Over Russian Oil Purchases

The United States is intensifying its efforts to isolate Russia economically by urging the Group of Seven (G7) nations to impose significant tariffs on China and India. This comes after Washington previously called on the European Union to consider steep duties on countries perceived as allies of Russia. The focus now is on targeting China and India, two of the world's most populous nations, for their continued purchases of Russian oil.

According to reports, the U.S. Treasury Department has encouraged G7 members—including Canada, France, Germany, Italy, Japan, and the United Kingdom—to implement “meaningful tariffs” on these countries. The discussion was part of a broader meeting aimed at increasing pressure on Russia to end its military actions in Ukraine. The administration argues that China and India’s oil imports from Russia are fueling the conflict, providing critical financial support to Moscow during its ongoing war.

A U.S. Treasury spokesperson stated that Chinese and Indian purchases of Russian oil are directly funding Putin’s military operations and prolonging the suffering of Ukrainian citizens. The agency emphasized that it had already urged the EU to join the U.S. in imposing impactful tariffs, with the promise that these measures would be lifted once the war ends. This offer serves as an incentive for both China and India, which already face high tariffs.

As of the end of August, India is subject to a 50 percent tariff, one of the highest among U.S. trade partners. Meanwhile, China faces a 30 percent duty, which has been deferred until November 10 while negotiations between Beijing and Washington continue. These existing tariffs make the proposed additional measures more significant.

During a recent appearance on Fox & Friends, former President Donald Trump highlighted the U.S. approach toward India. He mentioned that India was Russia’s largest customer and that he had imposed a 50 percent tariff on India due to its oil purchases from Russia. Trump noted that this move was challenging and caused some tension with India.

In response to the pressure, India is actively seeking dialogue with the EU. Indian Commerce Minister Piyush Goyal announced that negotiations for a free trade agreement (FTA) between India and the EU are progressing with sincerity and commitment. The goal is to finalize the deal before the end of the year. Goyal stated that the FTA will create new opportunities for Indian manufacturers to collaborate with European and global companies, fostering joint ventures, technology partnerships, and innovation.

EU Commissioner for Trade and Economic Security Maroš Šefčovič expressed confidence that the FTA could be finalized by the end of December, aligning with commitments made by Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen. He described the negotiations as moving with “unprecedented momentum.”

Meanwhile, U.S. Treasury Secretary Scott Bessent is currently on a weeklong trip to Europe, where he plans to meet with key trade partners. His itinerary includes a stop in Madrid, where he will meet with senior Chinese officials, including Vice Premier He Lifeng. The discussions will cover national security, economic, and trade issues, including topics like TikTok and cooperation on money laundering networks.

Bessent also plans to meet with Spanish officials to discuss the U.S.-Spain trade relationship. Before returning to Washington, he will travel to London to engage with British government representatives and the private sector.

These developments highlight the growing complexity of international trade relations and the strategic moves being made by major economies to address geopolitical challenges. As the U.S. continues to push for tighter economic measures against Russia, the responses from China, India, and the EU will play a crucial role in shaping the future of global trade dynamics.