US Treasury chief signals conditional approach to tariffs on Chinese goods

US Treasury Secretary Scott Bessent stated that the Trump administration would refrain from imposing additional tariffs on Chinese goods aimed at curbing China’s purchases of Russian oil unless European nations also enforce stringent duties against China and India.

Bessent emphasized the critical role European countries must play in halting Russian oil revenues to accelerate an end to the war in Ukraine, Reuters reports.

“We expect the Europeans to do their share now, and we are not moving forward without the Europeans,” he said when questioned about whether the US would impose Russian oil-related tariffs on Chinese imports following President Donald Trump’s decision to levy an additional 25% tariff on Indian goods.

Bessent said he pointed out in talks with Chinese officials in Madrid on trade and TikTok that the US had imposed tariffs on Indian goods and that Trump has been urging European countries to impose tariffs of 50% to 100% on China and India to cut off Russian oil revenue.

“The response from the Chinese side was that oil purchases are a ‘sovereign matter.’”

The Treasury Secretary expressed sharp criticism of certain European countries continuing to purchase Russian oil and others acquiring petroleum products refined in India from discounted Russian crude. He condemned these actions as inadvertently financing a conflict within Europe’s own neighborhood.

“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,” Bessent asserted, emphasizing the potential impact of cutting off Moscow’s primary source of revenue.

He also highlighted the “substantial progress” made in US-India discussions following tariffs imposed on Indian goods linked to Russian oil purchases. A further round of talks between New Delhi and Washington is scheduled for September 16, reflecting a recent easing of tensions between President Trump and Indian Prime Minister Narendra Modi.

Looking ahead, Bessent expressed willingness to collaborate with European partners on imposing harsher sanctions targeting Russian entities, including major oil companies such as Rosneft and Lukoil. He also proposed measures to leverage frozen Russian sovereign assets, estimated at $300 billion, which have been held since Moscow’s 2022 invasion of Ukraine.

“This could be achieved by seizing small portions of the $300 billion in frozen assets to start, or placing them in a special purpose vehicle that could serve as collateral for a loan to Ukraine,” he explained.

By Vafa Guliyeva