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HomeBusinessU.S. Targets China’s Russian Oil Deals as Trade Talks Reach Breaking Point

U.S. Targets China’s Russian Oil Deals as Trade Talks Reach Breaking Point

The United States is intensifying pressure on China to stop importing Russian oil, but Beijing continues to resist. American officials say China’s purchases help fund Moscow’s war in Ukraine and undermine Western sanctions. Washington recently warned that a 100% tariff could be imposed if China does not reduce its energy ties with Russia and Iran. This demand came during trade negotiations between the two countries.

China’s Foreign Ministry responded by defending its right to secure energy resources. Officials said national interests and sovereignty come first. They also rejected any form of coercion by the U.S. government. U.S. Treasury Secretary Scott Bessent acknowledged the difficulty of the talks. He called Chinese negotiators tough, but said progress is still possible on other trade issues.

The U.S. wants to block revenue streams that support military action by Russia and Iran. Cutting Russian oil sales is a key goal in that strategy. China, however, continues to import over 1.3 million barrels per day. Experts in Washington believe Beijing sees Russian oil as both affordable and strategic. Analysts say the low cost allows China to stabilize its economy while strengthening its global energy position.

Gabriel Wildau, a senior analyst, said the U.S. might avoid enforcing the full tariff. He warned that such a move could damage broader trade negotiations. Still, the Biden administration has not ruled out stronger action. Meanwhile, India also faces pressure from Washington. President Trump announced new tariffs on Indian goods because of continued purchases of Russian oil. India’s officials defended their longstanding ties with Moscow.

Inside Congress, momentum is growing for aggressive sanctions. Senator Lindsey Graham introduced a bill that would allow up to 500% tariffs on countries buying Russian energy. The bill has broad bipartisan support. Graham said China helps finance the war in Ukraine by purchasing Russian oil below market price. He argued that Beijing’s economic support empowers Putin’s military campaign.

White House adviser Stephen Miller echoed that sentiment. He said both China and India are financing conflict through energy deals, and that Americans should expect action. Still, some officials believe that China may use Russian oil imports as a bargaining chip. Scott Kennedy, an expert on U.S.-China relations, said Beijing could push for trade concessions in exchange for minor cuts.

While the United States seeks to curb Russian influence, it faces resistance from its largest economic rival. China continues to secure oil on favorable terms and shows no sign of reversing course.

For more business updates, visit DC Brief.

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