Photo: The Hindu
President Donald Trump has called on the European Union to impose tariffs of up to 100% on Chinese and Indian goods, citing their continued purchases of Russian oil as a lifeline for Moscow’s wartime economy. The U.S., he added, would be prepared to mirror any tariffs the EU decides to adopt, marking a sharp escalation in Washington’s efforts to tighten economic pressure on the Kremlin.
The proposal comes after repeated setbacks in securing a ceasefire between Russia and Ukraine. Trump’s high-profile meeting with Russian President Vladimir Putin in Alaska last month produced little more than vague commitments. Putin stressed that “root causes” of the conflict must be addressed, while Trump admitted only “some headway” was made without detailing concrete progress.
With diplomacy stalled, the U.S. is shifting gears toward leveraging trade and tariffs as a primary tool to weaken Russia’s revenue streams — particularly oil sales that continue to find major buyers in Beijing and New Delhi.
China remains the largest purchaser of Russian oil, while India’s trade with Moscow has surged to historic levels. According to India’s embassy in Moscow, bilateral trade reached a record $68.7 billion in the year ending March 2025, up from just $10.1 billion before the pandemic — an increase of nearly 480%.
China, meanwhile, has managed to avoid harsher “secondary” tariffs after negotiating a deal with Washington earlier this year that capped new levies on Chinese goods at 30%. Still, the White House sees Beijing’s continued energy imports from Russia as undermining Western sanctions.
The EU also maintains significant economic ties with Moscow. European Commission data shows the bloc’s bilateral trade with Russia stood at €67.5 billion ($78.1 billion) in 2024, while services trade reached €17.2 billion in 2023, highlighting the difficulty of balancing economic interests with political goals.
The U.S. has already hit India with additional tariffs of 25% on certain imports, raising total duties on affected products to nearly 50%. New Delhi has called these measures “unfair, unjustified, and unreasonable,” pointing out that both the U.S. and EU continue to maintain significant trade flows with Russia.
Despite tensions, Trump publicly struck a conciliatory note with Indian Prime Minister Narendra Modi. In a recent post on X, the president described Modi as a “very good friend” and expressed confidence that U.S.-India trade negotiations would “reach a successful conclusion.”
Talks with China have been less productive. A late-August visit to Washington by top Chinese trade negotiator Li Chenggang failed to deliver progress, underscoring the difficulty of bridging divides over tariffs, technology restrictions, and Beijing’s stance toward Moscow.
Meanwhile, Chinese President Xi Jinping and Modi strengthened ties with Putin during last week’s Shanghai Cooperation Organization summit in Beijing, signaling closer coordination among the three powers at a time when Washington seeks to isolate Moscow.
Trump’s push for the EU to align on sweeping tariffs represents a strategic pivot — an attempt to close loopholes in the global sanctions regime and force Russia’s key energy buyers to reconsider their reliance on discounted Russian crude.
Yet with Europe still balancing its own energy needs, India defending its right to buy Russian oil, and China deepening its partnership with Moscow, the success of this tariff-heavy strategy remains uncertain.