Trump asking EU to slap 100% tariffs on India and China raises eyebrows

Stories that U.S. President Donald Trump requested the European Union to slap tariffs of as much as 100% on China and India for his or her Russian oil purchases has raised eyebrows on either side of the Atlantic, with Europe seen as unlikely to acquiesce to the White Home’s request.

Trump made the proposal — first reported by the Monetary Occasions and confirmed to CNBC by two sources accustomed to the matter — when he was known as into a gathering with senior U.S. and EU officers in Washington on Tuesday. The U.S. was additionally ready to “mirror” any tariffs imposed by Europe on the 2 nations, the FT’s report added. The White Home has but to reply to CNBC’s request for feedback.

Requested to touch upon Trump’s bid, a European Fee spokesperson instructed CNBC Wednesday it couldn’t disclose assembly particulars because of confidentiality, noting, “The EU has engaged with all related world companions, together with India and China, within the context of its sanctions enforcement efforts. This engagement will proceed.”

The fee pointed to its nineteenth measures package deal its getting ready in opposition to Moscow, saying it had “added new sanctions instruments which permit us to focus on circumvention by way of third nations” and that the U.S. was a “crucially necessary accomplice” in Brussels’ efforts to pile stress on Russia’s warfare financial system.

Asking the EU to impose tariffs on key Russian power purchasers India and China was seen as one other strategy to punish their commerce with Moscow and put stress on Russia to finish the warfare in Ukraine.

But European officers seem cautious of alienating China and India, and the timing of Trump’s request has raised eyebrows as a result of it Washington is negotiating a commerce cope with New Delhi.

The U.S. has already imposed a 50% tariff on India, which features a 25% punitive responsibility it for its Russian oil purchases. India says the tariffs are “unfair, unjustified and unreasonable,” whereas calling out the U.S. and the EU’s commerce with Russia.

Ian Bremmer, founding father of Eurasia Group, instructed CNBC Wednesday that the White Home’s newest demand on the EU was “laborious to sq. with Trump’s efforts to get to a commerce cope with India and China, which he prioritizes over getting a ceasefire in Ukraine (not to mention issues like Transatlantic collective safety and deterrence),” Bremmer mentioned in emailed feedback to CNBC.

“It appears extra like an try and shift duty for a stronger response to Europe, creating political cowl for American inaction on the sanctions entrance whereas avoiding a direct hit to U.S.-China relations.”

The EU is unlikely to acquiesce, analysts say. Not solely would the bloc be cautious of adopting Trump’s contentious tariffs technique and burning its personal bridges with India and China — regardless of an financial rivalry with the Asian superpowers — however the EU has its personal sophisticated buying and selling relationship with Russia.

“Everybody is aware of if the Europeans have not been in a position to wean themselves off Russian power themselves greater than 3.5 years into the warfare, they positive as hell aren’t going to chop themselves off from their prime items import provider,” Eurasia Group’s Bremmer acknowledged.

Different analysts famous that Europe, in contrast to Trump, has an aversion to imposing tariffs as a part of a commerce playbook, arguing that the bloc should not be drawn into his commerce wars.

“Nobody in Europe believes tariffs are an efficient commerce coverage device … Europe would favor diplomacy to deal with points, slightly than outright commerce warfare,” Invoice Blain, market strategist and founding father of London-based Wind Shift Capital, mentioned in his Morning Porridge e-newsletter on Wednesday.

“Europe’s response ought to be ‘no.’ Trump kicked the hornets nest – let him cope with the results. However let’s have a look at what occurs,” Blain concluded.

The EU has a sophisticated buying and selling relationship with Russia. That is prone to stop the bloc from punishing different nations for doing enterprise with Moscow, when the EU does so too — albeit at a far decrease stage than earlier than the Ukraine warfare started in 2022.

The EU’s bilateral commerce with its neighbor stood at 67.5 billion euros ($78.1 billion) in 2024, in keeping with European Fee knowledge, with the EU’s imports have been value 35.9 billion euros and dominated by gas and mining merchandise. EU exports to Russia totaled 31.5 billion euros in 2024.

The EU has struggled to wean itself off Russian fuel and LNG (liquefied pure fuel) imports fully. Russia’s share of EU imports of pipeline fuel dropped from over 40% in 2021 to about 11.6% in 2024, whereas Moscow accounted for lower than 19% of whole EU pipeline fuel and LNG imports in 2024, the fee’s knowledge notes.

The U.S. has inspired its European allies to modify to U.S. LNG.

Trump mentioned the EU had pledged, as a part of its framework commerce cope with the U.S. — which noticed 15% tariffs imposed on the bloc’s exports to the States — to buy U.S. LNG, oil and nuclear power merchandise with an anticipated offtake valued at $750 billion over the following three years.

U.S. Secretary of Inside Doug Burgum instructed CNBC Wednesday that the Trump administration is trying to drive up the U.S.’ market share of the power sector in Europe.

“[Exporting] LNG can be one of many best issues, [you can] put it on a ship, ship it over right here. Displace Russian fuel, drive their market share to zero in Europe and drive U.S. market share up. That is nice for America, nice for our allies, and we cease funding Russia’s facet of the warfare,” he instructed CNBC at Gastech 2025.