In Washington— On Tuesday, U.S. President Donald Trump asked European Union officials directly to put tariffs of up to 100% on both China and India as part of a new plan to put pressure on Russian President Vladimir Putin. The request, which was made on a conference call with David O’Sullivan, the EU’s sanctions envoy, attempts to cut off a key source of income for the Russian economy, which has stayed strong because it keeps selling oil to these countries.
An unnamed U.S. official said that Trump told the EU that Washington was ready to match the EU’s tariffs if the bloc agreed to the idea. The official said, “They are basically saying, ‘We’ll do this, but you have to do it with us.'” The EU team is in Washington right now to work together on sanctions, and the U.S. request is a change from the EU’s earlier plan, which was to impose direct sanctions on Russia instead of tariffs on third-party countries.
The Financial Times was the first to write about the idea, which shows that Trump has always used tariffs as a tool of foreign policy. The President of the United States has often threatened to impose heavy tariffs on countries who keep buying Russian oil, saying that they are indirectly subsidizing the Kremlin’s expanding invasion of Ukraine, which started in 2022.
This new step against India follows right after the Trump administration’s previous actions. Trump had already put a 25% tax on Indian goods over the summer, saying it was because of trade and economic problems, such as India’s ties with Russia. The overall taxes on Indian imports have now hit 50%, thanks to the extra 25% tax on India’s trade in Russian oil. The most recent suggestion, on the other hand, would be a far bigger step up and may put a lot of stress on India’s economy. V. Anantha Nageswaran, the Chief Economic Adviser, says that the current 50% tariffs could slow India’s GDP growth by 0.5% to 0.6%.
But things are still changing. Trump’s late-night statement on social media on Tuesday was startling since it seemed to soften his tone toward India. He said that the two countries are trying to get rid of trade barriers and that he looks forward to talking to Prime Minister Narendra Modi. This current post is similar to other times when Trump has shown kindness to the Indian Prime Minister while also adopting trade steps that hurt India.
So far, the European Union has not agreed to the U.S. proposal. The alliance has already put targeted sanctions on nations that help Russia get around restrictions, but putting a big tariff on a large trading partner like India or China would be a risky step for both politics and the economy. The judgment will have big effects on the global sanctions system and the fragile balance of power between the U.S., Europe, and the big Asian countries.