**US Threatens China with Sweeping Trade Penalties for Buying Russian Oil**
The United States has warned Beijing that it could face severe trade penalties if it continues to purchase oil from Russia. US Treasury Secretary Scott Bessent made the comments on July 29, according to Reuters.
Bessent emphasized that Beijing values its sovereignty highly and would likely be willing to pay a 100% tariff on Russian oil imports. “We don’t want to impede on their sovereignty,” he said, “so they’d like to pay a 100% tariff.” He warned anyone who buys sanctioned Russian oil to be prepared for this consequence.
This warning comes as the US has set an August 7 deadline for Russia to agree to a ceasefire and comply with sanctions. The ultimatum was first issued by President Donald Trump on July 14, with a 50-day timeline. However, he later shortened this period, indicating growing frustration with Moscow’s lack of progress in peace talks.
China, despite international pressure, has maintained close trade and diplomatic ties with Russia. As the top buyer of Russian crude oil, Beijing is heavily invested in the Russian energy sector. The US has proposed secondary sanctions targeting countries that continue to do business with Russia, including imposing 100% tariffs on exports to the US.
If China fails to comply with these new rules, its exporters could face significant price increases and decreased sales in the US market. This would have a ripple effect on American consumers and further strain the already tense relationship between Washington and Beijing.
The US strategy aims to limit Russia’s oil income, which accounts for about one-third of federal revenue and funds the war effort. However, Moscow has shown little response to these threats, with Kremlin spokesperson Dmitry Peskov calling the tariff threat “serious” but not publicly reacting to the ultimatum.
**Commentary:**
This development is a significant escalation in the US’s efforts to pressure Russia through economic means. By targeting countries that continue to do business with Moscow, Washington seeks to cut off one of Russia’s main sources of revenue and limit its ability to fund its military campaigns.
The warning to China highlights the complexity of global trade relationships and the consequences of failing to comply with international sanctions. Beijing must now weigh its close ties with Russia against potential economic penalties from the US. This decision could have far-reaching implications for both Chinese exporters and American consumers.
**What’s Next?**
The clock is ticking for Russia, as the August 7 deadline approaches. Moscow must decide how to respond to the US ultimatum, which will significantly impact its energy sector and war effort. China, meanwhile, faces a difficult choice between maintaining its close ties with Russia and risking economic penalties from the US.
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