 "Trump to push G7 for tariffs on India, China over Russian oil purchases")
The United States will now pressure G7 member nations to impose higher tariffs on India and China, the two largest buyers of Russian oil, in an attempt to compel Moscow to engage in peace talks with Ukraine, The Financial Times reported.
Citing sources, the report added that in a video call on Friday (local time), finance ministers from the Group of Seven leading economies are set to discuss a US proposal for new measures as President Donald Trump intensifies efforts to broker a peace deal in Ukraine.
This comes just days after Trump urged the European Union to impose a 100 per cent tariff on India and China for their continued purchase of crude oil from Russia, a move that he argues is fuelling President Vladimir Putin’s war in Ukraine. However, a Reuters report citing EU officials said such a move was unlikely because the bloc treats sanctions and tariffs differently. Officials also noted that imposing such high tariffs on two important trading partners would be difficult, owing to factors such as:
- Economic impact
- Likely retaliation from Beijing
- An impending trade deal with New Delhi, expected to be finalised in the coming weeks
Citing a US Treasury Department spokesperson, The Financial Times noted: “Chinese and Indian purchases of Russian oil are funding Putin’s war machine and prolonging the senseless killing of the Ukrainian people.” The spokesperson added, “Earlier this week, we made it clear to our EU allies that if they are serious about ending the war in their own backyard, they need to join us and impose meaningful tariffs that will be rescinded the day the war ends.”
While the spokesperson declined to specify the proposed tariff levels, sources stated that Washington had floated figures between 50 and 100 per cent.
US softens stance on India
While the Trump administration continues to push for higher tariffs on India and China, earlier this week, Trump appeared to soften his stance on New Delhi. In a post on Truth Social, he wrote:
“I am pleased to announce that India and the United States of America are continuing negotiations to address the trade barriers between our two nations. 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!”
Deal between India and US ‘not that far apart’: Trump’s envoy pick Sergio Gor
According to a Reuters report, on Thursday, Trump’s envoy pick Sergio Gor said the two countries are “not that far apart” on tariffs and that he expects the issue will be resolved in the coming weeks. He added that Washington expects more from New Delhi than it does from other countries:
“We hold our friends to different standards,” he said.
India-US strained bilateral ties
Bilateral ties between India and the United States hit a rough patch after Trump imposed 25 per cent ‘reciprocal tariffs’ on India on July 30, even as Washington secured trade deals with several other countries, including China. Tensions escalated further when Trump announced an additional 25 per cent tariff on Indian goods over its continued purchase of Russian oil — a move made while the US was actively trying to broker a peace deal between Russia and Ukraine.
Bilateral trade between the two countries is currently valued at more than $190 billion annually.