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The US, under Trump, is pressuring G7 nations to impose 100% tariffs on India and China over Russian oil imports, escalating trade tensions and challenging India’s energy and foreign policy balance.
Trump Threatens India With New Tariffs Over Russia Oil Purchases
New Delhi: Under the leadership of US President Donald Trump, America has intensified economic pressure on the countries buying oil from Russia—India and China. America wants these countries to stop buying oil from Russia so that Russia's economic backbone can be broken in the Ukraine war.
Under this strategy, after imposing a 50% tariff on India, now America is demanding that G7 countries impose a 100% tariff on India and China.
America believes that Russia's economy earns the most from oil and gas. And big customers like India and China are giving economic strength to Russia, due to which it is able to continue the war.
India: In the first half of 2025, India bought an average of 1.75 million barrels of Russian oil per day, more than 35% of its total oil imports.
China: Russia's biggest oil buyer, but has so far avoided strict US tariffs.
The US now wants the G7 countries to also impose 100% tariffs on India and China. On September 9, Trump met EU representatives in Washington and put forward this proposal. The US told the EU that if it imposes tariffs, the US will also stand by. A US official was quoted as saying: "We are ready, but European partners have to come together."
The EU has so far been cautious about the US proposal. The EU is currently preparing its 19th sanctions package, which will try to stop trade with Russia through third countries. But the EU itself has been dependent on Russian gas. In 2024, the EU imported 19% of its gas from Russia, so it is difficult for it to impose tariffs completely.
This issue has become very sensitive for India. The US has already imposed a 50% tariff. India has called it "unfair and unreasonable." Trump's advisor called India a "tariff maharaja" and described Russian oil as "blood money." However, India argues that buying cheap oil from Russia is linked to its energy security and national interest.
PM Modi at the center with Putin and Xi Jinping (Image Source: Internet)
There was a positive exchange between Trump and PM Modi on social media recently, but trade tensions remain at the ground level. If the G7 also joins the US strategy, it could have a major impact on India's exports. The US is India's largest trading partner, and Indian exporters have already been affected by tariffs.
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China has strongly criticized the US policy. China's Foreign Ministry said that they oppose targeting China on the Russia issue. They called it a part of Trump's "America First" policy, which could trigger a global trade war.
This new strategy of America can become a challenge for both global trade and diplomacy. For India, it is a matter of delicate balance—energy security on one hand, relations with America on the other. If the G7 agrees to this, then India's export policy, global diplomacy, and internal energy policy can be affected.
