Washington D.C: The United States has intensified its campaign to choke off Russia’s war financing, calling on its allies in the G7 and the European Union to impose sweeping tariffs on goods imported from China and India. The appeal, made public by the U.S. Treasury on Friday, represents a new front in the West’s sanctions strategy moving beyond directly punishing Moscow to penalizing nations whose oil trade with Russia is seen as a lifeline for the Kremlin’s war effort in Ukraine.
The U.S. Treasury argued that China and India, as two of the world’s largest buyers of Russian crude, are indirectly fueling what Washington describes as “President Putin’s war machine.” By purchasing vast quantities of Russian oil at discounted prices, the two countries not only ensure a steady revenue stream for Moscow but also soften the impact of earlier sanctions designed to squeeze Russia’s economy.
The Treasury statement accused both Beijing and New Delhi of enabling the prolongation of the war and, in its words, “extending the senseless killing of the Ukrainian people.” Officials insist that tariffs are not intended as permanent punishment but as a conditional measure restriction that would be lifted only once hostilities in Ukraine end.
The Biden administration’s successor, now styling itself as the “Peace and Prosperity Administration,” is pressing its partners to take collective action. A special meeting of G7 finance leaders has been convened to explore ways of tightening economic pressure on Moscow while ensuring that loopholes such as oil trade with non-Western buyers do not undermine sanctions.
U.S. officials are keen to frame the tariff plan not as unilateral bullying but as a coordinated defense of international norms. By targeting goods linked to nations purchasing Russian oil, the administration hopes to create a cascading effect: either China and India scale back their Russian imports or face higher costs when their exports enter Western markets.
For China and India, the proposal represents a significant geopolitical and economic challenge. Both countries have justified their Russian oil imports on the grounds of energy security, arguing that their growing economies cannot afford to sever ties with a major supplier. India, in particular, has repeatedly emphasized that it maintains a non-aligned stance in the Russia-Ukraine war, insisting that discounted oil purchases are a pragmatic choice rather than a political statement.
China, meanwhile, has deepened its strategic partnership with Moscow, presenting itself as a counterweight to Western pressure. If G7 and EU nations proceed with tariffs, both Beijing and New Delhi could view the move as an infringement on their sovereign right to shape their own energy policies. Retaliatory trade measures or diplomatic pushback cannot be ruled out.
Within Europe, reactions are expected to be mixed. Some EU states, already struggling with the economic cost of sanctions and high energy prices, may hesitate to endorse a plan that risks sparking fresh trade tensions with two of their largest trading partners. Others, particularly Eastern European nations most exposed to Russia’s aggression, are likely to welcome Washington’s assertive stance.
The delicate balance of interests within the EU could complicate efforts to forge a unified front. For the G7, the challenge will be to present the tariffs not simply as punishment but as part of a broader strategy to accelerate an end to the war in Ukraine.
If adopted, the tariff plan would mark a sharp escalation in the West’s economic campaign. Rather than focusing solely on Russia, it would reshape the dynamics of global trade by penalizing major economies for their indirect support of Moscow.
The ripple effects could be felt across industries: higher costs for goods imported from China and India, possible supply chain disruptions, and uncertainty in global oil markets. Analysts warn that oil prices could spike if India and China respond by securing even more Russian supplies to cushion against Western penalties, creating volatility that reverberates far beyond Europe.
For now, the U.S. Treasury’s call is a signal of intent rather than an agreed-upon policy. But it underscores Washington’s frustration with the limits of existing sanctions and its willingness to adopt tougher, more unconventional measures. As the war in Ukraine grinds on with no clear resolution in sight, the debate over how far the West should go to starve Russia of resources is intensifying.
The coming weeks may determine whether America’s allies are willing to bear the risks of a tariff war in order to tighten the screws on Moscow or whether concerns about economic blowback will stall the latest U.S. initiative.