Why does the United States reap China, but not India, to import Russian oil? | Business and Economics News

US President Donald Trump threatened to separate new sanctions on Russia Secondary penalties The countries that buy crude for Moscow must in the efforts made to end the war of Russia, Ukraine.

While Trump imposed An additional tariff of 25 percent Earlier this month – to a total of 50 percent – on Indian goods, referring to their continuous imports of Russian oil, did not incite similar Punitive actions Against China, the largest Russian energy buyer.

So, why did the Trump administration launched pressure on India to stop buying Russian oil while taking a few measures against China?

Who buys Russia’s oil, and how does Trump want to prevent this?

Chinese customs data showed that the largest Russian oil buyer, China imported 109 million tons of this product last year, which represents nearly 20 percent of the total power imports.

In contrast, India imported 88 million tons of Russian oil in 2024.

As such, it can be said that China was the main economic lifeline of Russia, which led to accusations that Beijing indirectly assisting Moscow in its war on Ukraine, Now in its fourth year.

It is understood that legislators from both main American political parties are pushing for a draft law – the Penal Code in Russia for the year 2025 – which targets any country that buys Russian natural oil and gas.

The draft law will give Trump the authority to impose 500 percent of a tariff against countries that are seen to help Russia. According to what was reported, American Senate members are waiting for Trump’s approval to push the bill forward.

What are the reasons for Trump not to impose a new tariff on China?

In response to a question from Fox News on August 15, whether he was considering imposing secondary sanctions on Beijing after he and Russian President Vladimir Putin failed to agree on Russia’s Ukraine’s suspension in Alaska last week, Trump said: “Well, because of what happened today, I think I should not think about it.”

“Now, I may have to think about it within two or three weeks or something like that, but we do not have to think about it now,” he said.

Observers suspect that Trump is buying time to allow negotiations on a wide commercial deal that would include rare ground minerals.

Rare It is a group of 17 essential elements for many manufacturing industries, from car parts to clean energy and military technology. China has always dominated the mining and processing of rare ground minerals.

Since many American industries rely heavily on Chinese minerals, they remain an essential issue in continuous commercial talks.

Trump has other reasons to give China Easier riding from India. In particular, he is keen to avoid a high tariff and retailers in the United States fall behind the Chinese goods inventory before the Christmas holiday season in December.

For his part, Trump has taken steps to reduce flash points in recent weeks. Earlier this month, the United States reduced some export restrictions on advanced semiconductors – a major request from China.

On August 11, Trump allowed us the company Nafidia To sell advanced chips to China – even if the technology giant has to pay 15 percent of its Chinese sales to the federal government. Trump had prevented the deal before.

Speaking to CNBC news on Tuesday, US Treasury Secretary Scott Beesen defended Washington’s decision not to impose secondary sanctions against China, saying that Beijing bought 13 percent of Russian oil before the Ukrainian war, which now rose to 16 percent. “So China has a variety of inputs of its oil,” he said.

He added that China did not participate in the type of “argument” made by India.

But Pesin accused India of “profit”. He pointed out that before the Ukraine war, the import of India from Russian oil was less than 1 percent. But “now, I think it is 42 percent.” “This is what I call Indian arbitration – buying cheap Russian oil, and reselling it as a product,” CNBC told CNBC.

“They have achieved $ 16 billion in extra profits – some of the richest families in India.”

On Monday, White House Trade Adviser Peter Navaro became the second senior official in the Trump administration Accusing India of financing the war of Russia in Ukraine. Earlier this month, Stephen Miller, the White House Deputy Chief of Staff, said that New Delhi’s purchase of Russia was crude. “unacceptable”.

What are other officials?

On August 12, US Vice President JD Vance refused to say whether Trump would move against Beijing as he did with New Delhi in the previous week, when Washington announced an additional 25 percent tariff for India’s imports because of its continued purchase of Russian oil.

“The president said that he is thinking about it, but he did not make any fixed decisions … the issue of China is a little more complicated because our relationship with China, it affects many other things that have nothing to do with the Russian situation,” Vans said.

Earlier this week, US Secretary of State Marco Rubio warned that energy prices may rise if the United States imposed secondary sanctions on China on improving Russian oil.

In an interview with Fox News on Monday, Rubio said: “If you put secondary sanctions on a country – let’s say that you will follow the sales of oil from Russian oil to China. Well, China improves this oil. Then this oil is sold in the global market, and anyone who buys this oil pays more for that.”

Meanwhile, the Beijing Embassy in Washington said that China’s trade with Russia is within the scope of international law.

“The international community, including China, has made natural cooperation with Russia within the framework of international law,” said the embassy spokesman Liu Bingio on July 6.

How will the increasing definitions affect the American and Chinese economies?

The ceasefire deal in Ukraine, while reducing the sanctions resulting from Russia, would bring greater stability to the international system and the grace of the Chinese economy, not the least of which is the last wrong economic data in July.

Last month, the Chinese economy slowed down at a time when the factory activity, investment sales and retail trade decreased from June, indicating that indirect operations of Trump’s tariff raises the economy in the world.

Elsewhere, the youth unemployment rate in China increased to its highest level in 11 months in July, as the urban unemployment rate for the age group increased 16-24, with the exception of students, to 17.8 percent-an altitude of 14.5 percent in June.

“The cracks began to appear (in the Chinese economy) and the public image is not great.”.

However, she said, “Chinese banks and companies are preparing for secondary penalties for a long time. They have already started concern about this (Joe) Biden.”

In recent years, Beijing has increased its efforts to diversify trade routes and build larger numbers of strategic products at home, making the Chinese economy “more difficult through high or secondary sanctions,” said Garcia Herro.

“It is clear,” given the high level of goods from China to the United States, the highest customs duties will cause inflation for American consumers. “

Last year, American trade deficit with China It was 295.4 billion dollars, on the occasion of an increase of 5.8 percent from 2023.

What is the current situation of the United States of China’s trade?

On August 12, the United States and China extended a pre-existing tariff-and avoided a comprehensive trade war-90 days. With the extension, a higher American tariff was suspended on China until November 10, with all other elements of the truce remained in place.

The two sides agreed to pause the first tariff on May 11.

In April, China slapped a tariff of 145 percent, while Beijing slapped a 125 percent mutual tariff for the United States – its prices, which amounted to a virtual trade ban between countries.

The highly customary customs tariffs with China has pushed its narrowest levels since 2004 in June, according to the American Statistics Office data. The American commercial gap with China decreased by $ 22.2 billion from March to August. This reaches 70 percent of one year before.

But the tariff truce that he agreed in May in Geneva, Switzerland reduced the temperature by temporarily reduced the US tariff on Chinese imports to 30 percent, while Chinese fees on American exports fell to 10 percent. Beijing also agreed to resume some rare land exports.

“I think there will be a (commercial) deal soon,” said Garcia Hero. “Nothing is dramatic, because the levels of confidence on both sides are low. But the United States and China need some positive news, or they face the hitting of the economic walls.”