The finance ministers of the Group of Seven (G7) nations are preparing for a high-stakes discussion on new United States proposals aimed at escalating economic measures against Russia. Washington, under the leadership of President Donald Trump, has been urging its allies to toughen their stance against Moscow and accelerate Europe’s transition away from Russian energy supplies. The upcoming virtual meeting will focus heavily on the introduction of steep tariffs targeting Indian and Chinese purchases of Russian oil—an effort the US believes could choke off one of the Kremlin’s key revenue streams and force Moscow closer to peace negotiations with Ukraine.
According to reports from the Financial Times, the Trump administration intends to press G7 countries to endorse tariffs ranging from 50 to 100 percent on Russian oil bought by India and China. Officials argue that such punitive measures would sharply reduce Russia’s financial ability to sustain its military operations in Ukraine. The proposal comes in tandem with President Trump’s earlier push for the European Union to adopt similar policies, a move he says is necessary to prove Europe’s seriousness in seeking an end to the conflict.
US Treasury officials have framed the plan as part of a broader “Peace and Prosperity Administration” initiative, positioning economic pressure as a critical tool for compelling Moscow to the negotiating table. In a statement, a Treasury spokesperson stressed that continued purchases of Russian oil by India and China are directly fueling what they described as “Putin’s war machine,” prolonging the bloodshed and devastation in Ukraine. They emphasized that the proposed tariffs would remain in place only until the war ends, at which point they would be rescinded.
Canada, which currently holds the rotating G7 presidency, confirmed the scheduled meeting and indicated that additional measures to limit Russia’s ability to wage war would be considered. Officials in Ottawa described the talks as part of an urgent effort to both weaken Moscow’s economy and demonstrate unity among the world’s most advanced economies.
The push for higher tariffs on Russian oil imports also reflects Washington’s growing frustration with what it perceives as insufficient support from some allies. Last month, the Trump administration unilaterally imposed higher tariffs on Indian imports—setting them at 50 percent, split between a reciprocal duty and a punitive levy tied to New Delhi’s ongoing purchases of Russian oil. Similarly, tariffs on Chinese imports were raised in April, though Trump later scaled them back in May after markets reacted negatively.
Despite the strong pressure from Washington, the European Union remains hesitant to go as far as the US demands. EU officials have voiced concern that imposing extremely high tariffs on India and China—two of their largest trading partners—could trigger damaging economic consequences, including retaliation from Beijing. Instead, European leaders are prioritizing an accelerated timeline for phasing out Russian energy imports by 2027 while simultaneously considering more targeted sanctions against Moscow.
Meanwhile, Trump’s repeated promises to end the war in Ukraine “on his first day in office” have yet to materialize. Although he has threatened a range of tougher actions against Russia, concrete breakthroughs remain elusive. A recent summit in Alaska between Trump and President Vladimir Putin ended without progress, and Russian military strikes on Ukrainian cities have only intensified since then.
The G7 debate on tariffs highlights the increasingly complex challenge of aligning international partners on a unified economic strategy against Moscow. While Washington sees sharply higher tariffs on India and China as a decisive step, its allies remain divided over the risks, revealing deep fractures in the global response to the war in Ukraine.
