US Warns China of 100% Tariffs on Russian Oil Purchases

The United States has warned China that continued purchases of sanctioned Russian oil could trigger punitive tariffs of up to 100%, escalating tensions in the already fraught US-China trade relationship.

Washington Targets Energy and Dual-Use Goods Flows to Russia

Speaking after two days of US-China trade talks in Stockholm, US Treasury Secretary Scott Bessant told reporters that China’s imports of Russian oil—as well as sanctioned Iranian oil—are undermining Western efforts to cut off the Kremlin’s wartime revenue streams.

Bessant also raised concerns about Beijing’s sale of more than $15 billion in dual-use goods to Russia, items that can be used for both civilian and military purposes and which Washington says are enabling Moscow to sustain its war against Ukraine.

According to the Treasury Secretary, US legislation currently before Congress allows President Donald Trump to impose tariffs as high as 500% on any country buying sanctioned Russian oil. While such measures are not yet in place, Bessant stressed that the administration is prepared to act—and could push allies to do the same.

“I think anyone who buys Russian oil that is subject to sanctions should be prepared for that,” Bessant said.

Beijing Defends Sovereignty, Signals It Will Pay the Price

Chinese officials reportedly told the US delegation that Beijing, as a sovereign state with its own energy security priorities, will continue to make procurement decisions based on domestic needs.

“The Chinese take their sovereignty very seriously. We have no intention of encroaching on it—so they prefer to pay 100% tariff,” Bessant remarked.

The Treasury Secretary also warned Chinese Vice Premier He Lifeng that continued exports of sensitive goods to Russia could damage Beijing’s trade and investment ties with Europe.

“I pointed out to them that this is very damaging to their image in Europe, as they are contributing to a war on the European border,” Bessant added.

Broader Context: Trump’s Tariff Threats and Ukraine Deadline

The warning to China comes against the backdrop of a shifting US strategy toward Russia’s war in Ukraine.

On July 14, President Trump promised to impose “secondary tariffs” on Russia in the absence of a swift peace deal.

On July 28, he said the 50-day deadline he had earlier given Russian leader Vladimir Putin to move toward peace would be cut to “approximately 10–12 days.”

Separately, the US and China agreed on July 29, during the Stockholm talks, to extend a set of tariff de-escalation measures agreed upon in May.

However, that accord now risks being overshadowed by the brewing confrontation over Russian energy sales and military supply chains.