In a bold geopolitical move, U.S. President Donald Trump is pressing fellow G7 nations to impose sharply higher tariffs—ranging from 50% to 100%—on India and China. The reason? Their continued purchase of Russian oil, which Washington claims is helping fund Moscow’s war in Ukraine.
🔍 What’s Behind the Tariff Push?
According to U.S. Treasury officials, the administration believes that Indian and Chinese imports of Russian oil are “prolonging the senseless killing of the Ukrainian people.” The proposed tariffs are part of a broader strategy to cut off Russia’s energy revenues and force President Vladimir Putin to the negotiating table.
Trump’s message to allies is clear: “We’re ready to go right now,” but he wants Europe to “step up” and join the effort.
G7 Finance Ministers to Debate the Proposal
Finance ministers from the Group of Seven—Canada, France, Germany, Italy, Japan, the UK, and the U.S.—are expected to discuss the proposal in a video call. Canada, which currently holds the G7 presidency, has confirmed its openness to “further measures to increase pressure on Russia”.
EU’s Reluctance
While Trump has also urged the European Union to adopt similar tariffs, Brussels remains cautious. EU officials cite concerns over economic fallout and potential retaliation from Beijing and New Delhi. Instead, the bloc is considering accelerating its 2027 deadline to phase out Russian energy imports.
India’s Position
India has faced a 50% tariff hike from the U.S. already—split between a 25% reciprocal duty and a 25% punitive levy tied to its Russian oil purchases. Despite this, Trump struck a more conciliatory tone recently, posting on Truth Social:
“I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks… I feel certain that there will be no difficulty in coming to a successful conclusion for both of our great countries.”
Legal Challenges Ahead
Trump’s aggressive tariff strategy is also facing legal scrutiny. A U.S. trade court recently ruled that some of these tariffs may exceed presidential authority, with the case now heading to the Supreme Court.
What This Means for Global Trade
Trump’s tariff push marks a significant escalation in the West’s economic pressure on Russia. But it also risks straining ties with two of the world’s largest economies—India and China. As the G7 debates its next steps, the global trade landscape could be reshaped in ways that ripple far beyond the oil market.
