Global Tensions Rise Over Russian Oil Purchases

China rejected U.S. demands to stop buying oil from Russia and Iran, asserting energy purchases are a sovereign matter amid ongoing trade talks. Despite U.S. threats of tariffs up to 100%, Beijing signaled it won’t curb imports, which supply China with discounted oil and support its strategic ties—especially with Russia. Analysts doubt the U.S. will fully enforce the threats given trade deal goals and perceived inconsistencies in U.S. policy. China remains the primary buyer of Iranian oil (estimated 80–90% of Iran’s exports) and a major purchaser of Russian crude, while U.S. lawmakers push bipartisan measures to sanction countries financing Russia via energy purchases. Negotiations continue, with both sides expressing optimism about a broader trade deal despite this sticking point.

India resists stopping Russian oil purchases despite Trump’s tariff threats because cheap Russian crude is vital to its fast-growing, import‑dependent economy and hard to replace quickly. Russia now supplies about 36% of India’s oil, filling a gap left by earlier US sanctions on Iran and Venezuela. Switching away would raise costs, risk spiking global prices, and even affect US consumers, since India refines some Russian crude into products exported to the West. India argues its buying helps keep global prices lower and notes Western nations still trade with Russia in other goods. Longstanding strategic ties with Moscow—especially in defense—also make a sudden break unlikely, even as New Delhi deepens relations with Washington.

Rising US-India trade tensions are jeopardizing a planned visit by President Donald Trump to India this fall and undermining momentum for the Quad security grouping with Japan and Australia. The White House sought concrete deliverables—ideally a comprehensive trade pact—to anchor the trip during a Quad leaders’ summit, but the lack of a breakthrough makes the visit unlikely. Trump’s threats to sharply raise tariffs on India and his criticism of New Delhi’s Russian oil purchases have soured relations, leaving India “bitter” and casting doubt on the Quad’s near-term cohesion despite its elevation under Biden and revival under Trump.

US President Donald Trump signaled he is preparing new tariffs on countries buying Russian energy, naming China and escalating earlier threats, while confirming plans to sharply raise tariffs on Indian exports within 24 hours over its Russian oil purchases. He softened earlier comments about imposing “100%” tariffs, saying he never specified a percentage, and tied decisions to upcoming talks, including a meeting with Russia ahead of an Aug 8 deadline for a Ukraine truce. Trump also said he is close to a deal with China to extend a trade truce, even as he criticizes energy purchases that he says fund Russia’s war.