US Urges G7 to Slap Tariffs on India and China for Buying Russian Oil, Risks Straining Global Ties ..
Washington pushes for 50-100% duties on imports from major buyers of discounted Russian crude, as New Delhi vows to prioritize energy security amid trade rift
Washington D.C. / G7 Capitals / New Delhi – September 14, 2025
TIN24 Editor AMIT ALHAT
In a bold escalation of efforts to choke Russia’s war machine in Ukraine, the United States has called on its Group of Seven (G7) allies and the European Union to impose steep tariffs on China and India, the world’s top purchasers of Russian oil. The proposal, floated during a virtual G7 finance ministers’ meeting on Friday, September 12, aims to hit these nations with “meaningful tariffs” – potentially as high as 50-100% – on their exports to Western markets, according to U.S. Treasury Secretary Scott Bessent.
The move comes as President Donald Trump grows increasingly frustrated with Russia’s refusal to end its invasion of Ukraine, now in its fourth year. “We need to cut off the revenues funding this senseless killing,” Bessent told reporters after the call, chaired by Canadian Finance Minister Francois-Philippe Champagne from Ottawa. The G7 discussions, which also covered accelerating the use of frozen Russian assets for Ukraine’s defense, underscored a unified front against Moscow’s enablers, with the U.S. leading the charge on secondary sanctions.
From Washington D.C., where Treasury and trade officials huddled throughout the day, the proposal builds on unilateral actions already taken by the U.S. In August, the Trump administration doubled tariffs on many Indian goods to 50%, slapping an additional 25% duty specifically to pressure New Delhi into halting its imports of discounted Russian crude. Analysts estimate India saved around $17 billion last year by ramping up these purchases, making it Russia’s second-largest oil buyer after China. However, the U.S. has held off on similar escalations against Beijing so far, citing an ongoing trade truce, though Bessent is set to discuss broader issues, including Russian oil, during upcoming talks in Madrid with Chinese Vice Premier He Lifeng.
Across G7 capitals, reactions were cautious but supportive. In London, UK Chancellor Rachel Reeves echoed the need for “coordinated action” to enforce the G7’s oil price cap on Russia, while Berlin’s Finance Minister Christian Lindner highlighted the EU’s existing sanctions framework, which could be expanded. Tokyo and Ottawa signaled willingness to explore tariffs, though details remain under wraps. The ministers agreed to fast-track talks on trade measures targeting third countries that undermine Western sanctions.
In New Delhi, the proposal has sparked sharp backlash, deepening a growing trade rift with the U.S. Indian Foreign Ministry spokesperson Randhir Jaiswal stated that decisions on energy imports would continue to be guided by “national interests and energy security,” firmly denying any plans to curb Russian oil purchases. “It’s ironic that a pro-business administration is now lecturing us on sovereign choices,” a senior government official told reporters on the sidelines of a briefing, referencing the U.S.’s own energy deals. Commerce Minister Piyush Goyal warned that retaliatory measures could jeopardize ongoing bilateral trade talks, valued at over $190 billion annually, and urged Washington to reconsider amid global supply chain vulnerabilities.
The tariffs, if implemented, could slash Indian exports to the U.S. – including textiles, pharmaceuticals, and gems – by up to 30%, according to trade experts. China, meanwhile, has remained tight-lipped, but state media outlets decried the U.S. move as “economic coercion” aimed at containing Beijing’s rise. Beijing’s oil imports from Russia hit record highs in 2025, fueling its economy while evading Western price caps through “shadow fleets” of tankers.
As G7 leaders prepare for an in-person summit later this month, the push signals a potential fracture in U.S.-India relations, once bolstered by shared concerns over China. Trump, in a Fox News interview aired Saturday, boasted of solving “seven wars” including tensions between India and Pakistan but admitted the oil issue “causes a rift with India.” With global oil prices volatile and winter demand looming, the stakes couldn’t be higher for all parties involved.
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Author: The India News 24
TIN24 (The India News 24) The India News 24 (TIN24) is a Mumbai-based news Digital Media focusing on breaking news, local and regional issues in India, with content primarily in Marathi. It was established with an X (Twitter) presence since July 2022. Owner & News Editor: Amit Alhat Education: BA in Mass Communication Journalism (Graduate) Experience: 12 years in journalism Platforms: - Website: https://theindianews24.in - X (Twitter): https://x.com/the_indianews24 - YouTube: https://www.youtube.com/@theindianews247 - Instagram: https://www.instagram.com/theindianews_24
