The United States, under President Donald Trump, is pressing its G7 allies to impose tariffs on India, China, Russia and related oil trade flows, as part of a broader strategy to cut Moscow’s revenue streams. According to reports, Washington has floated the idea of steep duties—potentially between 50% and 100%—on imports from countries that continue to buy Russian crude at discounted rates.
The proposals are expected to be tabled during an upcoming virtual meeting of G7 finance ministers. U.S. officials argue that higher tariffs on India and China would serve as a strong deterrent, discouraging their reliance on cheap Russian oil while simultaneously reducing Moscow’s ability to fund its war in Ukraine. Washington has also signaled that such tariffs could be lifted if Russia ends its aggression.
India and China have emerged as the two largest buyers of Russian crude since Western sanctions took effect. New Delhi has defended its purchases as being guided by energy security and affordability, while Beijing has deepened its energy ties with Moscow despite Western pressure.
Some European Union members are cautious about the U.S. proposal, warning that aggressive tariffs on India and China could spark trade retaliation and disrupt supply chains. Alternatives being discussed include tightening existing sanctions, accelerating renewable energy adoption, and further restricting financial channels used by Russian oil companies.
For India, the stakes are significant. While its economy has benefited from discounted oil, higher tariffs could impact exports to G7 nations and complicate trade negotiations. China, too, faces potential headwinds as it juggles its own slowing economy with geopolitical frictions.
Analysts believe that whether or not the G7 adopts the full U.S. proposal, the move marks a clear shift toward linking tariffs on India, China, Russia directly to the Ukraine war, making energy trade a centerpiece of global diplomacy.
