US President Donald Trump advocates for up to 100% tariffs on Chinese and Indian imports to pressure Russia, prompting cautious responses from the EU, China, and India amid ongoing geopolitical tensions.
US President Donald Trump has been pressing the European Union to impose tariffs of up to 100 per cent on imports from China and India as part of a tougher strategy to pressure Russia to end its war in Ukraine. According to multiple media reports, Trump conveyed this request during a conference call with EU sanctions envoy David O’Sullivan and other officials while the EU delegation was visiting Washington to discuss coordination of sanctions. The US has indicated it would be willing to impose equivalent tariffs if the EU agrees to move forward with the plan, signalling a coordinated approach.
This proposal marks a notable shift for the European Union, which has so far predominantly relied on sanctions targeting Russian entities and has avoided broad tariffs against China and India. EU officials have highlighted the complexities involved in implementing tariffs, which legally require thorough investigations and justification distinct from sanctions regimes. They have also expressed caution given the sensitivity of trade relations with both China and India, as well as ongoing negotiations with India. Sources close to the EU have indicated that broad tariffs on these countries currently appear unlikely, with preference instead for targeted sanctions on specific banks and companies suspected of facilitating Russia’s military efforts.
China has strongly opposed the US proposal. The Chinese foreign ministry reaffirmed its rejection of economic pressure tactics and the inclusion of China in efforts aimed at Russia during a regular press briefing. India similarly remains resistant to increased tariffs, balancing its trade and diplomatic interests as it significantly continues to purchase Russian seaborne crude oil at favourable prices despite Western sanctions following Russia’s 2022 invasion of Ukraine.
Alongside these tensions, US-India relations show signs of cautious optimism. President Trump indicated readiness to discuss trade barriers directly with Indian Prime Minister Narendra Modi, aiming to improve cooperation. This prospect has given a positive boost to Indian markets, with stock benchmarks expected to open higher amid hopes for reduced trade frictions. Recent developments include Italian Prime Minister Giorgia Meloni’s phone conversation with Modi, reaffirming strong bilateral ties and cooperation, though avoiding direct reference to the US tariff demands.
In Europe, the EU’s approach to Russian fossil fuel imports is evolving. European Commission President Ursula von der Leyen announced plans to accelerate the phase-out of Russian fossil fuels, targeting residual imports and addressing complex elements such as the “shadow fleet” of vessels transporting Russian oil. The EU has already banned seaborne crude oil imports from Russia, which account for over 90 per cent of its oil imports from the country, and imposed a price cap on Russian oil transactions. However, the Kremlin has stated unequivocally that no sanctions will alter Russia’s course in Ukraine.
US diplomatic efforts continue amid these economic measures. Secretary of State Marco Rubio held follow-up discussions with Chinese Foreign Minister Wang Yi, promoting dialogue despite the backdrop of renewed US tariffs under Trump that have strained China’s export-driven economy. Notably, a 90-day truce on trade tariffs remains in effect.
Overall, President Trump’s aggressive push to leverage tariffs on China and India as a means of isolating Russia economically has met resistance from both the European Union and the targeted countries. While the US shows willingness to act unilaterally if the EU does not follow, Brussels appears to prefer a cautious and measured approach, focusing on targeted sanctions rather than sweeping tariff hikes. This dynamic underscores the complexity of aligning transatlantic and international economic policies at a time of ongoing geopolitics surrounding Russia’s war in Ukraine.
Source: Noah Wire Services
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