США intensifying pressure on G7 nations, specifically India and China, to impose significantly higher tariffs on the purchase of Russian oil in an effort to compel Moscow to engage in peace negotiations with Ukraine. This information was shared with the Financial Times by four sources.
During a Friday video conference, ministers of finance from the Group of Seven will discuss the US proposal for a new package of measures. This week, US President Biden called on the EU to implement tariffs on China and India, up to 100%, aiming to curtail the flow of funds supporting Russia’s war machine and the ongoing casualties in Ukraine.
‘We clearly communicated to our allies in the EU that if they are serious about ending the war in their backyard, they must join us in imposing real tariffs, which will be lifted on the day the war ends,’ the spokesperson added.
The spokesperson declined to specify exact tariff figures, but sources indicated a range of 50% to 100%. Previously, the US had already increased tariffs on imports from India to 50% due to their acquisition of Russian oil.
However, the EU recognizes that imposing such high tariffs on two key trading partners would be complex, considering the economic consequences and the potential response from Beijing. Brussels hopes to conclude a trade agreement with New Delhi in the coming months, aiming to strengthen ties with the Asian nation.
Despite this, Trump is seeking to achieve this through other measures, including strengthening sanctions against Russian energy companies and accelerating the timeline for EU members to cease purchases of Russian oil and gas, shifting the deadline from 2027 to an earlier date. To do this, he must pressure countries like Hungary and Slovakia – led by pro-Russian leaders who have yet to buy Russian oil – and overcome their blockades of tougher EU sanctions.
Meanwhile, the EU is considering sanctions against China for buying cheap Russian oil and gas. EU Commissioner for Energy, Dan Jørgensen, met with US Energy Secretary Chris Wray to discuss replacing Russian liquefied natural gas with US supplies. The EU still purchases around five percent of its gas from Russia, down from 45 percent before the full-scale invasion in 2022.
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