US Urges G7, EU to Impose Tariffs on China and India for Buying Russian Oil

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The United States has called on the Group of Seven (G7) nations and the European Union (EU) to place tariffs on countries buying Russian oil, with China and India singled out as the largest buyers. Washington argues that such measures are needed to cut Russia’s revenue streams and weaken its ability to continue the war in Ukraine.

The appeal was raised during a meeting of G7 finance ministers, chaired by Canada under its rotating presidency. The discussions focused on strengthening sanctions against Russia, expanding trade penalties, and exploring the use of frozen Russian sovereign assets to directly support Ukraine.

China and India have emerged as top markets for Russian crude since the start of the war. By continuing purchases, both nations have provided Moscow with an economic lifeline despite Western restrictions. US officials, including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, said imposing tariffs on these buyers would add pressure and discourage future imports.

Ministers also debated using Russia’s frozen assets to finance Ukraine’s defense. This option, though complex under international law, has gained traction among Western countries seeking new ways to support Kyiv. Combined with tariff measures, the move is designed to increase Russia’s financial strain.

The United States has already increased tariffs on some Indian imports, showing how trade has become part of a broader geopolitical strategy. If the EU and G7 adopt Washington’s proposal, it could mark a significant escalation in the economic response to the war.

Analysts warn that extending tariffs to China and India could reshape global oil trade patterns and potentially raise costs for energy-importing countries. However, US officials insist the long-term goal is clear: to reduce Russia’s oil revenue and hasten an end to the conflict.