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The upcoming round of US-China trade negotiations may extend to include China’s purchases of Russian and Iranian oil, according to US Treasury Secretary Scott Bessent.
This shift would mark a significant expansion of the talks, moving them into the realm of national security issues.
Shifting Focus Beyond Trade Tariffs
After months of escalating tit-for-tat tariffs between Washington and Beijing, culminating in rapid duty hikes in April, high-level discussions in Geneva and London led to a temporary de-escalation of tariffs until mid-August. Bessent suggested that with trade relations currently “in a good place,” the focus could now broaden.
“The Chinese, unfortunately, are very large purchasers of sanctioned Iranian oil and sanctioned Russian oil. So we could start discussing that,” Bessent told CNBC. China’s significant purchases of Iranian oil have been crucial for Tehran’s economy amidst international sanctions, and Beijing is also a major buyer of Russian energy.
Potential US Action and Call for Allied Support
Bessent also warned of potential US action against buyers of Russian oil, suggesting that “any country that buys sanctioned Russian oil is going to be subject to up to 100 per cent secondary tariffs.
Credit: REUTERS/Kevin Lamarque
“This indicates that the US might impose substantial duties on nations purchasing these Russian energy exports.
He urged European allies who have “talked a big game” to follow suit if the US implements these secondary tariffs. This comes as US President Donald Trump has expressed growing frustration with Russian President Vladimir Putin, recently giving him a 50-day ultimatum to reach a peace deal with Ukraine or face severe economic sanctions.
