US Delays China Tariffs as Bessent Urges Europe to Take Initiative on Russian Oil
US Treasury Secretary Scott Bessent announced on Monday that the Trump administration will hold off on imposing new tariffs on Chinese goods linked to Beijing’s oil purchases from Russia. This decision hinges on whether European nations will implement their own significant tariffs. Bessent emphasized the expectation for Europe to take a more active role in curbing Moscow’s oil revenue, stating that the U.S. will not proceed without European cooperation.
U.S. Tariff Strategy Linked to European Actions
In a joint interview with Reuters and Bloomberg, Bessent made it clear that the U.S. is looking for a coordinated approach with European countries regarding tariffs on Russian oil. He pointed out that the Trump administration has already enacted a 25% tariff on Indian imports associated with Russian oil and is urging European nations to impose tariffs ranging from 50% to 100% on both China and India. Bessent’s remarks come in the context of ongoing trade discussions, including talks with Chinese officials in Madrid, where the issue of TikTok was also on the agenda. Chinese representatives maintained that their oil purchases are a matter of national sovereignty.
Criticism of European Oil Purchases
Bessent expressed frustration over certain European countries continuing to purchase Russian oil, while others import refined petroleum products from India that are derived from Russian crude. He asserted that if Europe were to impose substantial secondary tariffs on entities buying Russian oil, it could significantly impact Moscow’s financial resources. “I guarantee you that if Europe put on substantial secondary tariffs on the buyers of Russian oil, the war would be over in 60 or 90 days,” he claimed, highlighting the potential effectiveness of such measures in diminishing Russia’s income.
U.S. and European Cooperation on Sanctions
The U.S. is also exploring further sanctions against Russian energy firms, including Rosneft and Lukoil. Bessent indicated that Washington is considering using frozen Russian sovereign assets as part of these sanctions. Options being discussed include seizing portions of the estimated $300 billion in blocked funds or utilizing them in a special-purpose vehicle to support loans for Ukraine. This strategy reflects a broader effort to tighten economic pressure on Russia amid ongoing geopolitical tensions.
Progress in U.S.-India Relations
Bessent noted that the tariffs imposed on Indian goods have already led to “substantial progress” in discussions with New Delhi. The U.S. administration has been urging NATO allies to increase their pressure on both Beijing and New Delhi regarding their economic ties with Russia. However, in recent weeks, the rhetoric towards India has softened as the U.S. and India prepare for a new round of talks scheduled for Tuesday. Meanwhile, the U.S. and China have reportedly reached a “basic framework consensus” regarding the transfer of TikTok ownership from ByteDance to a U.S. company, with further discussions expected later this week.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
