U.S. mulls countermeasures against China and India in response to alleged Russian connections
In recent developments, President Donald Trump is pursuing a strategy to further isolate Russia over its ongoing war in Ukraine, and this approach is evident in the economic arena, particularly with India and China, two of the world's largest economies.
The U.S. has been imposing tariffs on Chinese goods, with the highest duty reaching 145% in April and the current U.S. levy on most Chinese imports standing at 30%. Similarly, Trump has threatened to substantially raise tariffs on imported Indian goods, citing New Delhi's continued purchase and resale of sanctioned Russian oil on the open market.
These tariffs aim to make Indian and Chinese exports more expensive and less competitive in the U.S. market, effectively penalizing these countries economically to pressure them to stop Russian oil imports. For India, the Trump administration proposed tariffs on Indian goods—ranging from textiles to engineering exports—as a penalty for continuing to purchase discounted Russian crude oil, which in 2024 made up about 36% of India's imports.
Former RBI Governor Raghuram Rajan noted that stopping Russian oil purchases would not be disastrous economically for India since Russian crude remains competitively priced, and alternatives might involve higher costs. However, the bigger concern is political: if India publicly stops buying Russian oil under U.S. pressure, it may face domestic backlash for perceived surrender to foreign influence, complicating India’s strategic positioning.
For China, the situation is described as “more complicated.” While there are indications Trump may consider additional tariffs or duties targeting Chinese goods due to China's ongoing trade in Russian oil, concrete measures akin to those proposed for India have not been fully detailed. Trump has called the tariffs on India a “big blow” to Moscow and hinted at possible further action, including against China, but specifics remain less defined as of the latest reports.
The total trade between the U.S. and India is valued at nearly $130 billion, and the U.S. exports to India are worth $41 billion, while imports from India are at $87 billion. China imports an estimated $220 billion in Russian oil, and India purchases around $133 billion in Russian oil.
In May and June, Treasury Secretary Scott Bessent led trade negotiations with the Chinese in Geneva and London, respectively. However, the U.S. and China previously agreed to a trade truce to give negotiators more time to reach a deal, and the terms were set to expire on Aug. 12. President Donald Trump is considering a meeting with Chinese President Xi Jinping in the near future, and Secretary of Commerce Howard Lutnick stated that Trump would likely extend the trade deadline by another 90 days.
This strategy reflects a U.S. attempt to tighten sanctions on Russia by economically pressuring its oil buyers rather than by direct import bans, exploiting leverage through trade and tariffs. The Kremlin's trade relationships with China and India could soon come under scrutiny as a result.
The U.S. economic policy-and-legislation, as demonstrated by the tariffs on Chinese and potential tariffs on Indian goods, is being used as a political tool to exert pressure on these countries to halt their purchases of Russian oil. This strategy, aimed at interfering with general-news topics like the ongoing war in Ukraine and Russia's international relations, has the potential to significantly impact the global politics and economic structures.
