After Targeting India, Donald Trump Mulls Tariffs On China Over Russian Oil Purchases, No Final Decision Yet

(MENAFN- Live Mint) S President Donald Trump is considering imposing tariffs on China over its purchases of Russian oil, in a move similar to the one recently taken against India, according to Vice President JD Vance. Speaking to Fox News, Vance said no final decision has been made but confirmed that the idea is under discussion.

Earlier this week, Trump announced tariffs on India , citing its continued imports of Russian oil.

The discussions reflect growing concern within Trump's circle over Beijing's role in supporting Moscow's economy amid the ongoing war in Ukraine. The measure would aim to pressure China to reduce its energy trade with Russia.

Vance emphasised that the idea remains under consideration and no formal policy has been set.

China has significantly increased its imports of discounted Russian crude since the start of the Ukraine war in 2022, helping offset the impact of Western sanctions on Moscow. Washington has previously warned Beijing that such purchases undermine international efforts to isolate Russia economically.

If enacted, new tariffs could mark an escalation in Trump's already tough trade stance toward China.

Tariffs doubled on Indian goods

The White House last week issued an Executive Order imposing an additional 25 percentage points in tariffs on all Indian goods, raising the total duty to 50%. The move, announced by Trump, targets India's continued imports of Russian oil , which the administration says undermine US foreign policy and national security interests.

The new tariffs will take effect 21 days after the signing of the order , providing a brief window for India and Russia to potentially negotiate with Washington on the import taxes.

White House Trade Adviser Peter Navarro said India faced the steep hike due to its“refusal” to halt purchases of Russian crude - a trade the US claims is helping fund Moscow's war in Ukraine.

Since 2022, Russia's share of India's total oil imports has surged from 1.7% to 35.1%, making it India's largest oil supplier. The shift has been driven by discounted Russian crude, often capped at $60 per barrel, which India says is critical for its energy security.

No trade talks until dispute resolved

President Trump announced last week that the US would not engage in new trade negotiations with India until the tariff dispute is resolved. The Executive Order also allows for further expansion or reduction of tariffs depending on a country's alignment with US national security and foreign policy objectives.

The penalty on India follows the administration's earlier trade actions against other countries but contrasts with a softer approach toward China. While Beijing currently faces a 30% tariff, Treasury Secretary Scott Bessent has suggested its August 12 deadline could be extended if trade talks progress.

If implemented as planned, the 50% tariffs mark one of the harshest trade measures taken by Washington against a major economic partner in recent years, potentially escalating tensions between two of the world's largest democracies.

Also Read | India apparel exporters look to UK, EU to soften Trump tariff blow

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