WASHINGTON, D.C. – The United States is set to pressure its G7 allies to impose sharply higher tariffs on China and India over their continued purchases of Russian oil, a move aimed at forcing Moscow to the negotiating table for a peace deal in Ukraine. The proposal, spearheaded by the Trump administration, will be discussed by G7 finance ministers in a video call on Friday.
According to a US Treasury Department spokesperson, the measure is designed to cut off a critical funding source for Russia’s military efforts. “Chinese and Indian purchases of Russian oil are funding Putin’s war machine and prolonging the senseless killing of the Ukrainian people,” the spokesperson stated. The administration has proposed tariffs of between 50 and 100 percent, emphasizing that these would be rescinded the day the war ends.
The US has already initiated similar actions, having increased tariffs on Indian imports by 50 percent last month due to its Russian oil purchases. While the US believes this a necessary step, the proposal presents a dilemma for G7 members and the European Union, who are wary of the potential economic impact and retaliatory measures from Beijing. The EU is currently in talks to finalize a trade deal with India, making the imposition of steep tariffs a difficult prospect.
In a bid to find common ground, European officials are considering alternative measures, including tougher sanctions on Russian energy producers and accelerating the deadline for member states to stop buying Russian oil and gas. These alternatives would require the cooperation of countries like Hungary and Slovakia, which continue to receive Russian energy via pipelines.
Discussions on the matter are being facilitated by Canada, the current G7 president. A Canadian government official confirmed that the meeting will address “further measures to increase pressure on Russia and limit their war machinery,” including “tariffs on nations that continue to fund Russia’s war machinery.” However, Canada also faces its own challenges, as it has recently been working to improve relations with both India and China.
The proposed tariffs reflect a continued push by the US to intensify economic pressure on Russia while engaging countries that have maintained trade with Moscow. The outcome of the G7 meeting will be a key indicator of the international community’s unified stance on funding the war in Ukraine and its willingness to take measures that may carry significant economic consequences for all parties involved.
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