US Treasury Secretary Scott Bessent issued a stark warning to China officials during high-stakes trade negotiations in Stockholm: if they continue to buy sanctioned Russian oil, they may face crippling tariffs of up to 500%. With both political parties supporting initiatives to cut off funding to Moscow’s war economy, the warning reflects a growing feeling of urgency in Washington.
Bipartisan Legislation Targets Russian Oil Buyers
Bessent told Chinese officials he had laid out the details of a new bipartisan proposal that is presently making its way through Congress during a news conference after two days of talks. President Donald Trump would be empowered by the law to apply secondary tariffs to nations that continue to buy Russian oil in defiance of international sanctions.
Among the most severe economic threats the United States has imposed since the start of the conflict in Ukraine, Bessent said the proposed tariffs may reach 500%.
“Both sides of the political spectrum support this legislation, which is serious,” Bessent stated. “Countries should expect the repercussions if they continue to support Russia’s war effort.”
Tata Motors Shares Rise as US-EU Tariff Deal Boosts Global Trade Outlook
Trump Accelerates Sanctions Timeline
President Trump issued the warning to China a few days after announcing a new, accelerated schedule for the implementation of sanctions. Russia has ten to twelve days to show significant progress in halting its invasion of Ukraine under his new strategy. If not, the government will start charging nations that keep purchasing Russian oil 100% taxes.
This updated schedule reflects Washington’s mounting dissatisfaction over the sanctions’ apparent inability to drastically cut Russia’s oil revenue.
Bessent reaffirmed the administration’s determination by saying, “Anyone buying sanctioned Russian oil should be ready for this.” “This is the last warning.”
U.S. Labour Laws Targeted as Trump Administration Pursues Major Deregulation
China Pushes Back on US Pressure
Chinese officials reacted defensively to the warning, even though Bessent’s tone was forceful. Beijing maintains that domestic demand and national sovereignty, not geopolitics, are the driving forces for its energy imports.
According to Bessent, “they made it clear that their energy decisions are sovereign matters.” “We don’t want to get involved in that, but they have stated clearly that they would rather pay a 100% tariff than have their wishes dictated to them.”
This impasse demonstrates the widening gap between Beijing’s resolve to operate independently despite pressure from around the world and Washington’s strategic objectives.
Trump Administration to Finalize Semiconductor Tariff Probe Amid Global Trade Tensions
China: Russia’s Top Oil Customer
China imports almost 2 million barrels of Russian oil per day, making it the country’s biggest consumer. The next-largest buyers, Turkey and India, are far behind it in terms of volume.
Despite extensive Western sanctions, these continuous purchases have been crucial in assisting Russia in maintaining consistent oil income. In the eyes of the United States and its partners, this fact erodes the efficacy of the sanctions regime and feeds increasing demands for stricter enforcement.
In recent years, China and Russia have developed a deeper energy connection that is a component of their larger strategic collaboration. It now runs the risk of harming Beijing’s reputation internationally, though.
Dual-Use Technology Also Under Fire
Along with oil imports, Bessent voiced concerns over China’s continued exports to Russia of dual-use commodities. These include items like semiconductors, sensors, drones, and industrial machinery that can be used for both military and civilian applications.
The United States estimates that since the war began, China has sold Russia dual-use goods worth more than $15 billion. Russia’s military capabilities on the battlefield are said to be directly supported by a large number of these exports.
Bessent cautioned that if these shipments continue, they may harm China’s wider trading partnerships, particularly with European nations.
Bessent stated, “I made it very clear to Vice Premier He Lifeng that Europe views this as supporting a war on its own territory.” “It is undermining China’s credibility as a trustworthy and non-violent global actor.”
India Urged to Tread Carefully in U.S. Trade Deal Talks, Warns Leading Think Tank
US Allies Urged to Join the Effort
Bessent emphasised that other countries are also working to put financial pressure on Russia. Although Washington is at the forefront, it is aggressively urging allies in Europe and Asia to follow suit by enforcing secondary tariffs or trade restrictions on countries who continue to do business with Russia’s sanctioned industries.
“Closing the loopholes that are allowing Russia to continue financing this war is the goal here, not punishing any one nation,” Bessent clarified. “We hope that our allies will follow suit.”
China may soon have to deal with a wall of international tariffs in addition to pressure from the US if big economies start banding together.
India Urged to Exercise Caution in Trade Talks with US Amid Rising Global Tensions
Rising Tensions in US-China Relations
The US-China relationship has become extremely tense, particularly when it comes to global sanctions implementation, as the Stockholm conference demonstrated. The two countries’ disagreements over the conflict in Ukraine and its economic effects are growing even as trade negotiations continue.
The message for the US is clear: even powerful nations like China will not tolerate aiding Russia, whether through oil purchases or technological exports.
The difficulty for Beijing is striking a balance between the growing threat of economic repercussions from Western countries and its wish to keep close ties with Russia.
Trump’s BRICS Tariff Threat Casts Shadow Over India-US Trade Deal
Global Economic Risks Loom
China and the world economy would probably be significantly impacted if the US were to move forward with imposing tariffs of up to 500% on Chinese imports. A move like that might start a wider trade war, mess up supply lines, and raise the cost of everything from electronics to energy.
Analysts caution that even the possibility of secondary duties might frighten investors and disturb the dynamics of international commerce, which is already what markets are constantly monitoring.
Additionally, Beijing needs to think about the long-term effects of being perceived as a covert backer of a war that the world has denounced.
Trump Quietly Expands Trade War Strategy Across Asia to Undermine China
Conclusion
The huge stakes of the current geopolitical moment are highlighted by the warning delivered in Stockholm. The United States is increasing economic pressure on any country, whether an ally or an adversary, that keeps bolstering Russia’s economy through trade. This conflict is centred on China, which exports vital technologies and imports large amounts of Russian oil.
Due to impending new tariffs and a lack of diplomatic time, both nations must now make tough choices that could alter not only the course of the conflict but also international trade and diplomacy in the future.