US Urges NATO and G7 Allies to Halt Russian Oil Imports, Threatens Tariffs on China
The United States has intensified economic pressure to end the Ukraine war, urging all NATO and G7 nations to cease purchasing Russian oil. President Donald Trump has proposed imposing 50-100% tariffs on China to deter its economic support for Russia and has already placed a 25% tariff on Indian goods over continued Russian oil imports. The move signals a coordinated effort to cripple Moscow's war funding by targeting its primary energy revenue and the countries that facilitate it.
Unpacked:
Russian oil exports are a primary source of funding for its government and war effort. By restricting these revenues, the U.S. and allies aim to limit Russia’s ability to finance the Ukraine war and reduce the Kremlin’s war chest.
China and India have continued purchasing Russian oil, often at discounted prices. Their ongoing imports help Russia offset lost revenue from Western markets, making their participation crucial to the overall effectiveness of sanctions.
‘Shadow’ tankers are older, often poorly maintained ships with questionable insurance, used to secretly transport Russian oil and avoid sanctions. Their use makes enforcement harder and raises environmental and financial risks for coastal countries.
High U.S. tariffs could make Indian exports less competitive in the American market, potentially hurting Indian industries and leading to trade tensions between India and the U.S.