U.S. Pushes G7 & EU to Levy Tariffs on China, India Over Russian Oil Purchases

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👋 Greetings from the Global Desk

Welcome to this special edition of our Global Trade Flash, where we track the shifting tectonics of international economic policy. In today’s spotlight: the U.S. ramps up its campaign to squeeze Russia’s war chest—this time by pressuring major oil buyers like China and India.

💼 G7 Ministers Explore Tariffs to Squeeze Russia’s Revenue Streams

Finance ministers from the Group of Seven (G7) nations convened virtually on Friday under Canada’s rotating presidency. Their agenda: devising tougher economic penalties on Russia to push for an end to its war in Ukraine.

The meeting, chaired by Canadian Finance Minister Francois-Philippe Champagne, centered on how to repurpose frozen Russian sovereign assets to fund Ukraine’s defense. Ministers also discussed new sanctions and trade measures—including potential tariffs on nations seen as “enabling” Russia’s war effort.

🇺🇸 Washington Rallies Allies to Target Oil Purchasers

U.S. Treasury Secretary Scott Bessent urged his G7 counterparts to align with Washington’s approach: imposing tariffs on countries purchasing Russian crude, which remain a vital lifeline for Moscow’s economy.

“Only a unified strategy that disrupts Putin’s war financing at its root can bring this senseless conflict closer to an end,” Bessent and U.S. Trade Representative Jamieson Greer said in a joint statement after the call.

Both officials welcomed the G7’s interest in accelerating sanctions pressure and using immobilized Russian assets to directly bolster Ukraine’s defense capabilities.

🌏 Spotlight on China and India

Earlier on Friday, a U.S. Treasury spokesperson escalated Washington’s stance by calling on both G7 and EU members to impose “meaningful tariffs” on imports from China and India. The goal: to compel these nations to curb their purchases of discounted Russian oil, which continue to undermine the effect of Western sanctions.

• India has emerged as one of the largest buyers of cut-rate Russian crude. In response, the U.S. has raised tariffs on Indian goods to 50%, after former President Donald Trump added an extra 25% duty specifically aimed at curbing New Delhi’s Russian oil imports. This move has strained trade talks between the two democracies.

• China, while also importing Russian oil, has so far avoided new U.S. tariffs as Washington navigates a fragile trade détente with Beijing.

🏛 Trump Weighs Pressure but Holds Back on China

Trump, in a Fox News interview, voiced growing frustration with Russian President Vladimir Putin’s unwillingness to halt the war, warning that “patience is running out.”

Although he hinted at sanctions on Russian banks and oil exports as possible levers, he stopped short of unveiling fresh penalties, citing the need for European alignment.

🤝 Upcoming Talks in Madrid

Secretary Bessent will travel to Madrid this week to meet with Chinese Vice Premier He Lifeng for another round of high-stakes discussions. The agenda is expected to include:

• U.S.-China trade imbalances

• Washington’s demand for TikTok’s divestment of U.S. operations

• Global anti–money laundering cooperation

These talks will test whether Washington can pressure Beijing on Russian oil without derailing the fragile trade truce.

📊 Context: Why It Matters

• Economic leverage: Russian oil revenues are a primary funding source for its war machine.

• Policy precedent: Using tariffs on third-party nations marks a new, more aggressive tactic by the U.S.

• Ripple effects: This strategy risks fueling trade tensions with major economies like China and India, potentially reshaping global supply chains.

📌 Key Takeaways

• The U.S. is seeking G7–EU unity on imposing tariffs targeting countries that buy Russian oil.

• India faces immediate tariff hikes, while China remains under scrutiny but untouched for now.

• G7 is accelerating plans to channel frozen Russian assets into Ukraine’s defense.

• A new phase of global economic confrontation may be unfolding if major economies are forced to pick sides.

💬 Final Thoughts

Washington’s push signals a turning point: it is no longer only punishing Russia directly but now looking to penalize its trading partners. If adopted, this strategy could redefine how economic power is wielded in geopolitics—and further complicate the global trade landscape.

🙏 Thank You for Reading

We appreciate your time and curiosity. Stay tuned for our next update, where we’ll break down how these tariff threats could affect energy prices, supply chains, and emerging market economies.

Until next time, stay informed and stay ahead.

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