Trump proposes G7 taxes on India, China for Russian oil imports
The United States is set to urge G7 member nations to implement higher tariffs on India and China, the two largest purchasers of Russian oil, in a bid to persuade Moscow to participate in peace negotiations with Ukraine. The report noted that during a video call on Friday, finance ministers from the Group of Seven leading economies are expected to deliberate on a US proposal for new measures as President Donald Trump escalates efforts to negotiate a peace deal in Ukraine.
This follows closely on the heels of Trump’s call for the European Union to implement a 100 per cent tariff on India and China due to their ongoing purchase of crude oil from Russia, a strategy he contends is exacerbating President Vladimir Putin’s war in Ukraine. EU officials indicated that such a move was improbable, as the bloc distinguishes between sanctions and tariffs. Officials also emphasized that implementing such elevated tariffs on two significant trading partners would pose challenges. According to a spokesperson from the US Treasury Department: “Chinese and Indian purchases of Russian oil are funding Putin’s war machine and prolonging the senseless killing of the Ukrainian people.” The spokesperson stated, “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are serious about ending the war in their own backyard, they need to join us and impose meaningful tariffs that will be rescinded the day the war ends.”
Although the spokesperson refrained from detailing the suggested tariff levels, sources indicated that Washington had proposed figures ranging from 50 to 100 percent. As the Trump administration persists in advocating for increased tariffs on India and China, earlier this week, Trump seemed to ease his position regarding New Delhi. In a statement shared: “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 eagerly anticipate my conversation with my esteemed friend, Prime Minister Modi, in the weeks ahead. I am confident that we will reach a successful conclusion beneficial to both of our great nations!”, Trump’s envoy pick Sergio Gor stated that the two countries are “not that far apart” on tariffs and expressed optimism that the issue will be resolved in the coming weeks. He stated that Washington anticipates greater expectations from New Delhi compared to other nations: “We hold our friends to different standards,” he stated.
Bilateral ties between India and the United States faced challenges after Trump imposed 25 per cent ‘reciprocal tariffs’ on India on July 30, while Washington successfully negotiated trade deals with various other nations, including China. Tensions escalated further when Trump announced an additional 25 per cent tariff on Indian goods due to its ongoing purchase of Russian oil — a decision made while the US was actively attempting to broker a peace deal between Russia and Ukraine.
