US Treasury Secretary Calls on Europe to Consider Tariffs on China and India Over Russian Oil

Summary – US Treasury Secretary has urged European nations to impose tariffs on imports from China and India, aiming to reduce Russia’s oil revenue amid ongoing geopolitical tensions.,

Article –

On September 15, 2025, the US Treasury Secretary called on European nations to consider imposing tariffs on imports from China and India. This move is aimed at cutting off revenue streams to Russia generated through oil sales, as part of ongoing international efforts to apply economic pressure amid escalating geopolitical tensions involving Russia.

Key Players Involved

The main stakeholders in this development include:

• United States: Represented by Treasury Secretary Janet Yellen, advocating for tariffs.
• European Union (EU) Member States: Responsible for considering and potentially implementing tariff measures.
• China and India: Major importers and distributors of Russian oil, whose trade practices are under scrutiny.
• Russia: The target of economic sanctions due to its involvement in regional conflicts and its reliance on oil revenue.

European Reactions

Reactions within Europe have been mixed. Some member states cautiously support stronger economic sanctions on Russia. However, imposing tariffs specifically on China and India has raised concerns regarding:

1. Potential economic fallout for European countries dependent on trade with these Asian economies.
2. Possible disruptions in supply chains.
3. The need for thorough impact assessments before proceeding.

The European Commission highlighted the importance of balancing strong sanction enforcement with economic and diplomatic considerations, stating the necessity of consultations among members before any decision is made.

Responses from China and India

India and China have yet to issue formal responses but have previously opposed sanctions viewed as unilateral or extraterritorial. Both countries emphasize that their energy cooperation with Russia is aligned with their strategic and economic interests.

Immediate Consequences

• Diplomatic dialogues within Europe have intensified regarding sanction policies.
• Financial markets, particularly in energy and commodities, have experienced short-term volatility due to uncertainty.
• Economic analysts warn of possible retaliatory tariffs from China and India, which may impact European exporters.

Proponents argue that tariffs could effectively reduce Russia’s military funding by limiting oil revenue.

Next Steps

The European Union plans to conduct further discussions through technical and political channels, involving:

• The European Commission
• The European External Action Service (EEAS)
• Member state representatives

A formal decision on tariffs would require consensus or qualified majority voting, based on comprehensive impact studies and further diplomatic consultations. Dialogue with China and India may take place simultaneously to mitigate tensions and clarify economic implications.

Plans include establishing monitoring and enforcement mechanisms to ensure effective implementation if tariffs are adopted.

This development is part of broader international efforts targeting Russia’s economy through sanctions and trade restrictions, reflecting complex geopolitical challenges surrounding energy security and regional conflicts.

Stakeholders will continue to closely monitor the situation as it evolves.

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