The United States is ramping up efforts to pressure G7 allies to impose steep tariffs on India and China for purchasing Russian oil, in a bid to force Moscow into peace talks over the war in Ukraine, according to a report by the Financial Times citing four individuals briefed on the plans.
In a video call scheduled for Friday, finance ministers from the Group of Seven leading economies are set to discuss a US proposal that would see tariffs on Russian oil imports by India and China increased sharply, potentially ranging between 50 and 100 per cent. The move aligns with President Donald Trump’s renewed push to broker a peace deal in Ukraine and clamp down on the financial flows that support Russia’s war effort.
A spokesperson from the US Treasury Department told reporters, “Chinese and Indian purchases of Russian oil are funding Putin’s war machine and prolonging the senseless killing of the Ukrainian people.” The spokesperson added, “Earlier this week, we made it clear to our EU allies that if they are serious about ending the war in their own backyard, they need to join us and impose meaningful tariffs that will be rescinded the day the war ends.”
The proposal follows Trump’s earlier calls urging the European Union to impose up to 100 per cent tariffs on imports from China and India. While the administration has already implemented a 50 per cent tariff on Indian imports and raised tariffs on Chinese goods earlier this year, the efforts were scaled back amid market backlash and concerns about global trade disruptions.
EU officials, however, have expressed deep reservations about the feasibility of such sanctions, given the likely economic repercussions and retaliatory measures from Beijing and New Delhi. Brussels is reportedly seeking alternative methods to increase pressure on Russia, including tightening sanctions on Russian energy producers and accelerating the 2027 deadline for member states to cease purchasing Russian oil and gas.
Three European officials told the Financial Times that persuading the US to adopt alternative measures would require Trump to pressure member states such as Hungary and Slovakia—both led by pro-Russian governments that have historically blocked sanctions aimed at curtailing Russian energy exports.
The EU’s energy commissioner, Dan Jørgensen, recently held talks with US Energy Secretary Chris Wright to explore replacing Russian liquefied natural gas supplies with American alternatives. “We need, as fast as possible, to make sure that we get rid of the dependency that we still have on Russian energy,” Jørgensen said. While the bloc’s imports of Russian gas have decreased to about 20 per cent of its total consumption from 45 per cent before the invasion of Ukraine in 2022, significant reliance remains.
Canada, which holds the G7 presidency and hosted the group’s last summit in Alberta, confirmed that the meeting was called “following discussions with the US.” John Fragos, spokesperson for Canada’s finance minister, stated, “The G7 is resolved in its opposition to Russia’s illegal and unjustified war.” A Canadian government official, speaking on condition of anonymity, added that the agenda would include “tariffs on nations that continue to fund Russia’s war machinery.”
However, Ottawa faces its own dilemma. Prime Minister Mark Carney recently initiated efforts to restore relations with India after a two-year diplomatic rift, while similar efforts are underway with China as Canada seeks to diversify its economy away from reliance on the United States.
As the debate intensifies, the proposals are expected to be among the most far-reaching attempts by the West to choke off Russian financial flows—though whether the G7 will adopt the measures remains uncertain amid mounting geopolitical and economic concerns.
