The U.S. has urged its G7 and EU allies to join in targeting China and India with tariffs for buying Russian oil, even as President Donald Trump's trade war policies fuel a historic surge in U.S. tariff revenues.
Washington Calls For Coordinated Action
Finance ministers from the Group of Seven nations held a call on Friday to discuss new ways to increase pressure on Moscow to end its war in Ukraine, reported Reuters.
Canadian Finance Minister Francois-Philippe Champagne, who chaired the session, said ministers agreed to accelerate talks on using frozen Russian assets to support Ukraine's defense.
U.S. Treasury Secretary Scott Bessent pressed counterparts to impose tariffs on nations enabling Russia's war effort through energy purchases
In a joint statement with U.S. Trade Representative Jamieson Greer, Bessent stressed, "Only with a unified effort that cuts off the revenues funding Putin’s war machine at the source will we be able to apply sufficient economic pressure to end the senseless killing."
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Trump Turns Up Heat On India, Spares China
Trump has already imposed an additional 25% tariff on imports from India, doubling punitive duties to 50% in a bid to curb New Delhi's Russian crude purchases.
The move has strained trade talks between the two democracies.
China, however, has avoided fresh penalties despite its oil deals with Moscow. Trump has held back, mindful of a fragile trade truce with Beijing.
Bessent is set to meet Chinese Vice Premier He Lifeng in Madrid for talks on trade, TikTok divestment and financial crime measures.
Earlier on Friday, in a Fox News interview, Trump said his patience with Russian President Vladimir Putin was running out.
Tariff Revenues Shatter Records
Meanwhile, U.S. tariff collections soared to an unprecedented $30 billion in August, according to Treasury data. That marks the sixth straight monthly increase, largely driven by tariffs introduced in April that generated $23 billion alone.
The Kobeissi Letter analysis said the figure represents a leap from a typical monthly average of $7 billion.
At the current pace, annual revenue could surpass $300 billion -- a 400% jump from 2024 levels. Analysts noted that applying those funds directly to the budget could trim the deficit by the same amount.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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