U.S. President Donald Trump calls on the European Union to slap 100% tariffs on Indian and Chinese imports. He goes after the money they’re spending by raising the stakes on their Russian oil purchases with this audacious ask. The Financial Times was first to report this proposal. It follows the U.S. drastically increasing a previously low 4% to a towering 25% tariff on Indian imports, raising total duties on Indian goods to as high as 50%. The designation is intended to bolster pressure on Russian President Vladimir Putin as ongoing geopolitical tumult continues to roil world markets.
The Biden administration is understandably perturbed by India’s growing economic relationship with Moscow. Bilateral merchandise trade between the two countries surged to an all-time high of $68.7 billion for the year ending March 2025. Today, this figure stands at a staggering $15.5 billion increase from pre-pandemic levels, which totaled only $10.1 billion. Tariffs on Indian textiles and agricultural products are “unfair, unjustified and unreasonable.” They further highlighted the contradictory nature of U.S. and EU trade relations with Russia.
In response, Trump suggested that the EU install high tariffs of their own. And in fact when pressed, I rightly said the U.S. would be prepared to “mirror” whatever tariffs Europe introduced on India and China. This strategy seeks to bring the West together to oppose the Kremlin’s behavior. At the same time, Trump is feeling pressure from other movers and shakers to project a robust dedication to international diplomacy.
China remains the top buyer of Russian oil. Thanks to their recent truce with Washington, it has so far managed to escape “secondary” tariffs—cutting the number of new levies on its products down to 30%. U.S.-China negotiations seem to be going south. Talks during a late-August visit by top Chinese trade negotiator Li Chenggang led to few concrete agreements.
As the U.S. seeks to strengthen its position against Russia, Trump’s deadline for Putin to engage in peace talks with Ukraine’s President Volodymyr Zelenskiy has passed without any indication from the Russian leader of interest in dialogue. During this tumultuous period, Trump expressed confidence in his approach to negotiations, stating:
“I am certain that there will be no difficulty in coming to a successful conclusion.” – Donald Trump
The U.S. has restarted trade negotiations with India. It is this type of action that is sorely needed to address current trade obstacles. Both countries are still seeking avenues to reduce the strife and improve economic ties.