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Monday, August 18, 2025

18/08/25, Trump Tariffs

 

In a double standard move, the United States penalised India with additional tariffs for buying Russian oil while refusing to sanction China for the same practice.

Washington's contrasting approach has drawn criticism, particularly after top Trump official said that sanctioning Beijing would raise global oil prices.

Tariffs on India, leniency towards China

Last week, President Donald Trump announced a 50% tariff on Indian exports, citing New Delhi's continued imports of Russian crude. India is the world's second-largest buyer of Russian oil after China. The move was justified by the White House as part of a broader pressure campaign on Moscow to end its war in Ukraine.

Yet, when pressed on why China had not faced similar punitive measures, US Secretary of State Marco Rubio explained that Beijing's role in refining and reselling Russian oil complicated matters. He argued that sanctioning China directly would lead to a sharp rise in global oil prices, potentially destabilising markets already under strain.

"Now, if you look at the oil that's going to China and being refined, a lot of that is then being sold back into Europe," Rubio told Fox Business. "Europe's also buying natural gas still. There are countries trying to wean themselves off it, but there's more Europe can do with regard to their own sanctions."

Trump's calculated approach

Trump himself appeared to take a more cautious line when asked about possible action against Beijing. Following his summit in Alaska with Russian President Vladimir Putin, which ended without a breakthrough on Ukraine, Trump told Fox News that fresh sanctions on China could wait "two or three weeks".

"Well, because of what happened today, I think I don't have to think about that right now," he said. "I may have to think about it in two weeks or three weeks or something, but we don't have to think about that right now."

At the same time, Trump and Chinese President Xi Jinping are engaged in sensitive trade talks aimed at reducing import duties and improving market access. Analysts suggest that Trump is reluctant to jeopardise those negotiations by opening a new front over oil imports, especially when China remains Russia's biggest customer.

Impact on India

India, however, has borne the brunt of Washington's pressure campaign. Trump claimed that the tariffs on Indian exports had already begun to affect Moscow, forcing it to the negotiating table. "When you lose your second largest customer, and you're probably going to lose your first largest customer, I think that probably has a role," he said, referring to Russia's growing isolation.

Indian officials have privately voiced frustration over being singled out while China, with far greater reliance on Russian energy, remains untouched. Critics in New Delhi argue that the American stance undermines trust and demonstrates how strategic and economic considerations often outweigh the principles Washington invokes.

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