Trump links new tariffs on India and China to joint EU action against Russia

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Tejaswini Deshmukh
Tejaswini Deshmukh is the contributing editor of RegTech Times, specializing in defense, regulations and technologies. She analyzes military innovations, cybersecurity threats, and geopolitical risks shaping national security. With a Master’s from Pune University, she closely tracks defense policies, sanctions, and enforcement actions. She is also a Certified Sanctions Screening Expert. Her work highlights regulatory challenges in defense technology and global security frameworks. Tejaswini provides sharp insights into emerging threats and compliance in the defense sector.

The United States is signaling a dramatic shift in its approach to the ongoing war in Ukraine. President Donald Trump has told European officials he is ready to place sweeping new tariffs on China and India. These measures are aimed at pressuring Russian President Vladimir Putin into serious peace talks with Ukrainian President Volodymyr Zelenskiy. But there is a catch—Washington will only move forward if Europe takes the same steps.

The proposal came during a call Trump made to a high-level meeting in Washington with senior officials from the US and the European Union. According to people familiar with the discussion, the US leader suggested mirroring any tariffs the EU might impose on China or India.

This move represents a challenge to the EU, as past attempts to tighten sanctions have often been blocked by some member nations. Hungary, for example, has been resistant to stronger measures on Russia’s energy exports. Since EU sanctions require agreement from all members, reaching consensus has not been easy.

Targeting Russia’s Revenue Streams

The US and European partners are weighing additional steps to squeeze Moscow’s economy. Ideas on the table include stricter limits on Russia’s “shadow fleet” of oil tankers. These ships have been key to moving Russian crude to buyers despite sanctions. Other measures being discussed involve further restrictions on Russian banks, its financial sector, and major oil companies.

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The timing of the new tariff proposal is notable. It comes after a deadline set by Trump for Putin to meet directly with Zelenskiy passed without progress. Instead of engaging in talks, Russia has intensified its military strikes. A recent attack on eastern Ukraine left at least two dozen civilians dead while they were collecting pension payments.

For now, the US has avoided direct punishment of Russia despite repeated threats. However, tariffs have already been used against India. Duties on some Indian goods were doubled to 50 percent because of New Delhi’s continued purchases of Russian oil. At the same time, Trump has maintained that the US and India are still negotiating trade barriers. He expressed optimism that talks with Prime Minister Narendra Modi will lead to an agreement.

India remains one of the largest Asian buyers of Russian crude since the war began. Shipping data shows that Indian imports of Russian oil surged after sanctions cut Moscow’s access to many Western markets. This has given Russia a vital source of income, even under heavy restrictions from the West.

China’s Position in the Crosshairs

The proposal to impose new tariffs also puts China in a delicate position. In recent months, Washington had shown signs of a softer stance toward Beijing. A planned summit with President Xi Jinping was being prepared, and higher tariffs on Chinese goods were paused until November to ease tensions.

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However, if Europe agrees to move forward, the US has said it will match tariffs on China as well. This would risk reigniting a trade war at a time when both sides have been trying to stabilize relations. Beijing has already managed to keep its exports strong despite existing US tariffs of up to 55 percent.

Analysts note that China could retaliate if hit with further tariffs. Such action could disrupt supplies of critical materials, including rare earths used in technology and defense industries. It could also jeopardize the planned meeting between Trump and Xi.

So far, China’s Foreign Ministry has not issued any direct comment on the tariff proposal. But the potential impact is clear: targeting the two largest buyers of Russian oil—India and China—could cut off vital funds that Moscow relies on to finance its war effort.

Meanwhile, European officials in Washington are debating whether they can unite behind such a bold step. The EU is currently working on its 19th package of sanctions against Russia. Ukraine’s Prime Minister Yuliya Svyrydenko, who joined the talks, has urged allies to hit not only oil shipments but also traders, refiners, and other enablers of Moscow’s revenue.

With Russia already under some of the toughest sanctions in modern history, the discussions now center on whether fresh measures on China and India could finally force Moscow back to the negotiating table.

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