Treasury Secretary Scott Bessent warned on Tuesday that the US may impose steep tariffs on Russian oil buyers, including China, if Congress passes sanctions legislation. This follows a tense two-day of US-China trade talks held in Stockholm, where the US representative acknowledged that Beijing has consistently stated its commitment to energy sovereignty, regardless of potential sanctions.
Bessent emphasized that proposed legislation currently under consideration by Congress, which would authorize President Trump to impose tariffs of up to 500% on buyers of sanctioned Russian oil, could lead to retaliatory measures by US allies. Such actions would significantly impact Russia’s energy revenue, which is critical to its economy and international relations.
Chinese officials have made it clear that they view energy policy as a vital aspect of national sovereignty. During the trade talks, they made it a point to stress their determination to continue purchasing Russian oil as part of their internal economic priorities.
The US is concerned that the imposition of tariffs could lead to a broader geopolitical shift, with allies adopting similar measures against Russian energy exports. This could have far-reaching implications for global energy markets and international diplomacy.
China remains the largest buyer of Russian oil, with imports exceeding 2 million barrels per day, accounting for nearly 20% of its total crude imports. India and Turkey are the next major buyers, following a significant increase in Russian oil purchases since Western sanctions were imposed three years ago.
Since 2022, both China and India have significantly increased their Russian oil imports. In May, India became the second-largest buyer of Russian fossil fuels, with imports estimated at $4.9 billion, about 72% of which was crude, according to the Centre for Research on Energy and Clean Air.
Russian officials have criticized Trump’s threat as undermining efforts to achieve peace in Ukraine, highlighting the complex dynamics of international relations and the economic implications of sanctions on global markets.