The United States is reportedly considering new tariffs on China for importing Russian oil, escalating its trade pressure campaign. This move comes just days after Washington slapped a 25% tariff on Indian goods in response to New Delhi’s continued purchases of discounted Russian crude, as we covered in our detailed trade dispute report.
Why This Matters
China has become one of the largest buyers of Russian oil since the Ukraine war began, helping Moscow keep its economy afloat despite Western sanctions. US officials argue that these imports undermine sanctions designed to weaken Russia’s war machine.
Sources told Reuters that the Biden administration is assessing “targeted tariffs” rather than a blanket trade ban, similar to the approach taken with India. The aim is to send a warning without disrupting global markets too abruptly.
The Bigger Picture
The tariffs, if imposed, would further strain already tense US–China relations, which are still reeling from disputes over technology exports and security concerns — reminiscent of previous US–China tariff battles under the Trump era.
Experts say this could have ripple effects on oil prices, shipping lanes, and even manufacturing costs worldwide.
As we saw in Brazil’s recent WTO steel tariff decision, trade measures can trigger counter-retaliations, and Beijing is known for responding strongly to economic pressure.
Possible Outcomes
- China’s Retaliation: Higher tariffs on US agricultural or tech exports.
- Oil Price Volatility: Global crude prices could spike.
- Shift in Trade Routes: Some countries may re-route Russian oil through intermediaries to bypass tariffs.
Washington insiders believe a decision could come within weeks. If confirmed, this would mark another sharp turn in global trade dynamics — one that could reshape alliances and fuel new economic tensions, much like the emerging global protests over geopolitical conflicts we recently covered here.