Washington: The United States Treasury has urged its G7 and European Union (EU) partners to impose “meaningful tariffs” on Chinese and Indian imports in response to their continued purchases of Russian oil. The move is part of a wider strategy to intensify economic pressure on Moscow amid the ongoing Ukraine conflict.

Trump raises tariffs on Indian imports

US President Donald Trump has announced an additional 25% tariff on Indian goods, raising the total punitive tariff rate to 50%. The administration said the step was intended to push New Delhi to reduce its imports of Russian crude.

The decision has strained trade negotiations between Washington and New Delhi, with Indian officials warning that escalating tariffs could damage bilateral trade relations. India, one of the largest buyers of Russian oil, has consistently maintained that its purchases are guided by energy security and economic considerations.

Uneven approach to China

Interestingly, the Trump administration has chosen not to impose further tariffs on Chinese imports, despite Beijing also purchasing Russian oil. US officials acknowledged that Washington continues to maintain a sensitive trade balance with China, which has already seen reciprocal tariffs reduced from above 100% in recent years.

A US Treasury representative told Reuters via email, “Chinese and Indian purchases of Russian oil are funding Putin’s war machine and prolonging the senseless killing of the Ukrainian people. Earlier this week, we made it clear to our EU allies that if they are serious about ending the war in their own backyard, they need to join us and impose meaningful tariffs that will be rescinded the day the war ends.”

Treasury pushes for coordinated G7 action

The US Treasury has organised an urgent G7 conference to discuss enhanced measures against Moscow. Washington hopes that its European allies will impose aligned tariffs on Russian oil importers to send a stronger collective message.

Treasury Secretary Scott Bessent is scheduled to visit Madrid on Friday, where he will meet Chinese Vice Premier He Lifeng. Discussions are expected to cover a broad agenda, including trade disputes, Washington’s demand that Chinese-owned TikTok sell its American operations, and global efforts to counter money laundering.

Trump’s remarks on Russia

President Trump, in a Fox News interview, said he was growing increasingly frustrated with Russian President Vladimir Putin. While not announcing immediate new sanctions, Trump indicated that additional measures were on the table.

“We’re going to have to come down very, very strong,” he said, suggesting possible enhanced sanctions targeting Russia’s banking institutions and oil sectors, along with coordinated tariff measures with European partners.

Trump also reiterated his belief that European nations must play a stronger role in ending the conflict. “President Trump’s Peace and Prosperity Administration is ready, and our G7 partners need to step up with us,” a Treasury spokesperson added.

India’s position

India has defended its continued energy trade with Russia, pointing out that it has consistently complied with global rules and caps on Russian crude. Indian officials have also stressed that as a developing economy, affordable energy imports are critical for sustaining growth and meeting domestic needs.

Analysts believe the US tariffs could complicate relations between the two countries, particularly at a time when New Delhi has been strengthening strategic partnerships with Washington in defence and technology sectors.

Global implications

Trade experts say the uneven treatment of India and China in Washington’s tariff approach could raise questions among allies. While the US is pushing Europe to take firmer action, its reluctance to confront Beijing with similar tariffs reflects the complexities of its economic interdependence with China.

The EU, meanwhile, remains divided on the issue of imposing fresh tariffs. Several European states have shown reluctance, fearing that such moves could further disrupt trade flows and exacerbate inflationary pressures at home.

Conclusion

The US administration’s call for higher tariffs on Indian and Chinese imports underscores the geopolitical tensions linked to Russian oil purchases. While Washington seeks a united G7 front, differences in trade priorities and strategic interests are likely to complicate consensus. For India, the new tariffs pose an immediate challenge to its trade relations with the US, even as it navigates its energy needs in a turbulent global market.