Why Washington punishes India but spares China over purchases of Russian oil
Unequal treatment reflects political pragmatism and economic dependence but for now, India is bearing the brunt of US pressure over Russian oil, while China remains shielded by its leverage in trade and critical minerals.
The United States President Donald Trump has stepped up efforts to squeeze Moscow’s war finances, threatening new sanctions on Russia and secondary penalties for nations still buying its oil. Earlier this month, Washington slapped an additional 25 percent tariff on Indian goods — raising the total levy to 50 percent — citing New Delhi’s continued reliance on Russian crude.
Yet China, the world’s largest
China imported a record 109 million tons of Russian oil in 2024, about 20 percent of its total energy needs. India’s purchases stood at 88 million tons. While both countries provide Moscow with vital revenue, India’s sudden surge — from less than 1 percent of its oil imports before the war to 42 percent today — has triggered US accusations of “profiteering.” Washington argues that Indian refiners are exploiting cheap Russian supplies, reselling products abroad, and generating billions in windfall profits, news agencies reports.
Trump has avoided escalating against China, despite calls from Congress for sweeping secondary sanctions. Asked on Fox News whether Beijing might face penalties, he replied that he might “think about it in two or three weeks,” leaving the door open for trade negotiations.
Several factors underpin the White House’s reluctance. Rare earth minerals — a sector where China dominates — remain central to US manufacturing and defense industries. With trade talks under way, Washington is wary of jeopardizing supply chains. Trump is also keen to avoid a pre-Christmas tariff shock for US retailers dependent on Chinese imports.
Meanwhile, his administration has offered concessions, such as easing chip export curbs and approving Nvidia’s sales of advanced semiconductors to China. Treasury Secretary Scott Bessent defended the stance, noting that China’s share of Russian oil imports has risen only slightly since the war began, unlike India’s dramatic shift.
Officials concede that sanctioning China would carry global costs. Secretary of State Marco Rubio has warned that penalizing Chinese refiners could raise global energy prices, feeding inflation at home. Analysts also stress that Beijing has prepared for potential sanctions by diversifying trade routes and boosting domestic production of strategic goods, making its economy harder to squeeze.
India, by contrast, is more exposed. Its growing dependence on Russian oil and deepening trade imbalance with the US make it an easier target for pressure.
Despite earlier tariff wars, Washington and Beijing agreed this month to extend a tariff pause until November, lowering US duties on Chinese goods to 30 percent and Chinese levies to 10 percent. That truce reflects mutual need: China’s economy is showing strain from weak factory activity and rising youth unemployment, while US consumers remain sensitive to import-driven inflation.
“Both sides need some positive news,” said Alicia Garcia Herrero, chief Asia Pacific economist at Natixis. “Neither trusts the other, but both face economic walls.”
For now, India is bearing the brunt of US pressure over Russian oil, while China remains shielded by its leverage in trade and critical minerals.
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