The United States has asked its G7 partners and European Union allies to impose tariffs on China and India, saying both countries are helping Russia by continuing to buy its oil. Washington argues that this indirectly supports Moscow’s war in Ukraine, a claim that India has denied.
“The targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” Ministry of External Affairs said in a statement.
The request was made during a call with G7 finance ministers on Friday. The agenda included further sanctions on Russia and possible trade actions against countries that continue to support its war effort.
US President Donald Trump has already raised tariffs on Indian imports by another 25%, doubling the total to 50%. This move is meant to pressure New Delhi to stop buying cheap Russian crude. Interestingly, Trump has not taken similar tariff action against China yet.
‘Unified effort’ needed, says US Treasury
US Treasury Secretary Scott Bessent stressed the importance of collective action. “Only with a unified effort that cuts off the revenues funding Putin’s war machine at the source will we be able to apply sufficient economic pressure to end the senseless killing,” Bessent and US trade representative Jamieson Greer said in a joint statement, as reported by Reuters.
Canadian finance minister François-Philippe Champagne, who chaired the meeting, said ministers also discussed using frozen Russian assets to help fund Ukraine’s defence and speeding up sanctions.
“A wide range of possible economic measures to increase pressure on Russia, including further sanctions and trade measures, such as tariffs, on those enabling Russia’s war effort,” were reviewed, Canada said in a statement.
Trump’s strategy: Sanctions and tariffs
President Trump has often used sanctions and tariffs as tools to push other nations into following his “Make America Great Again (MAGA)” agenda. He first set a 10% base tariff on imports from all countries, later raising rates depending on each nation’s trade ties with the US.
Tariffs on China once crossed 100% before being lowered, but tensions between the two countries kept growing.
Trump’s administration has repeatedly said that India and China’s trade with Russia helps fund the Ukraine war. Trump has also hinted that ending the conflict would boost his chances of winning a Nobel Peace Prize.