Will US President Donald Trump impose additional tariffs on China for its procurement of crude oil from Russia? That’s a question that is being repeatedly asked of the US government since it announced a 25% additional tariff on India for its Russia crude oil trade. Donald Trump remains undecided about implementing tariffs on China regarding its Russian oil purchases, with Vice President J D Vance noting that Washington’s relationship with Beijing included aspects beyond the Russian context.
Trump yet to decide on China tariffs for Russia oil
The United States had first implemented 25% reciprocal duties on India, and Trump recently imposed an additional 25% tariffs on Delhi for its Russian oil acquisitions. This has elevated the total tariffs on India to 50%, positioning it amongst the highest rates the US has enforced on any nation globally.The supplementary 25% tariff will be implemented from August 27.When questioned about tariffs on nations such as India for their Russian oil purchases and whether similar measures would apply to China, which also imports Russian oil, JD Vance emphasised the complex nature of US-China relations.“Well, the President said he’s thinking about it, but he hasn’t made any firm decisions,” JD Vance said during his appearance on Fox News Sunday.
China and India dominate Russian oil imports
The relationship with China presents greater complexity due to its wide-ranging implications beyond the Russian context, Vance explained.He indicated that Trump is currently evaluating various possibilities and will reach his conclusion at his own discretion.Also Read | Explainer: Donald Trump’s 50% tariffs – will India budge on Russia crude oil trade? “Obviously the China issue is a little bit more complicated because our relationship with China, it affects a lot of other things that have nothing to do with the Russian situation,” Vance said.
India reacts sharply to 25% additional US tariff
India has criticised the US decision, describing it as “unfair, unjustified and unreasonable”.“It is extremely unfortunate that the US should choose to impose additional tariffs on India,” said the external affairs ministry in Delhi, whilst confirming that India would undertake all necessary measures to safeguard its national interests.India ranks as the third-largest consumer of oil globally and has substantially increased its Russian crude oil imports following the Russia-Ukraine conflict, primarily due to the considerable price reductions available.Trump has called for India to cease buying discounted oil from Russia, asserting that these purchases are “fueling the war machine” in the Ukrainian conflict. His request is driven by two key aims: reducing the United States’ trade imbalance with India and advancing negotiations with Russian President Putin to resolve the crisis in Ukraine.Also Read | Symbol of India-Russia ties takes a hard hit! How Russia-backed Indian refinery Nayara Energy is navigating a perfect storm – big hurdles challenge growthIndia’s historical crude oil imports predominantly came from Middle Eastern nations, with minimal Russian supply. However, this dynamic shifted dramatically in 2022 after the Russia-Ukraine conflict began and G7 countries imposed a $60-per-barrel price cap, aiming to limit Russian oil revenue whilst ensuring continuous global supply.India continues to avoid sanctioned oil from Iran and Venezuela, but its Russian crude purchases remain permissible, leading to substantial increases in Russian imports. This resulted in reduced procurement from traditional sources such as Saudi Arabia, Iraq and Nigeria. According to Kpler’s analysis, Russian oil, which held a negligible share in India’s 2021 import mix, now accounts for about 37% of imports. This development has established India, alongside China, as a primary buyer of Russian crude.
