• The prospect of tariffs on Chinese imports of Russian oil was discussed but was not the central focus of high-level US-China talks in Madrid.
  • A temporary tariff truce between the two nations has been extended until November as negotiations on economic policy and national security continue.
  • The US strategy to pressure Russia now emphasizes coordinated G7 action targeting third-party buyers of its oil, a shift from solely direct sanctions.

High-level trade discussions between US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng in Madrid included the notion of imposing tariffs on Chinese imports of Russian oil, though people familiar with the matter stressed it was not the centerpiece of the negotiations. The talks, which also covered broader economic policy and the regulation of Chinese technology platforms, resulted in an extension of a temporary tariff truce until November.

The mention of potential tariffs reflects a broader shift in US strategy to curtail revenue flows to Moscow. Rather than imposing new direct sanctions on Russia, the US has been advocating within the G7 for a coordinated approach that would target the main buyers of discounted Russian oil—namely China and India. This move toward secondary measures aims to close loopholes that have allowed Russian crude to continue flowing to global markets, albeit at a discount.

“What we are seeing is a tactical pivot,” said one source briefed on the discussions. “The focus is increasingly on the demand side, on making it less economically attractive for other nations to purchase from Moscow.” The US has already imposed secondary tariffs on Indian oil imports, criticizing the country for rapidly increasing purchases and reselling Russian oil products for a profit.

Efforts to reach a unified G7 position have proven complex, complicating EU efforts for a cohesive sanctions regime. The Madrid talks are seen as a critical channel for managing escalating trade tensions, even as fundamental disagreements persist. A spokesperson for the US Treasury declined to comment on the specifics of the private discussions.

The temporary truce provides a short window for further negotiation, but experts predict continued friction. With the issue of Russian oil tariffs remaining on the table for future talks, the outcome of these negotiations could significantly alter global energy trade patterns and introduce new volatility into oil markets.