President Tu.s. Donald Trump and President of the European Fee Ursula von der Leyen introduced the US-EU commerce settlement and shake palms after a gathering on the Trump Turnberry Golf Membership in Turnberry, Scotland on July 27, 2025.
Andrew Harnik | Getty Photos Information | Getty Photos
US President Donald Trump has reportedly known as on the European Union to slap as much as 100% tariffs on China and India for Russia’s oil purchases.
Trump made the proposal that it was first reported by the Monetary Instances and confirmed to CNBC by two sources accustomed to the difficulty. The US was additionally ready to “mirror” the tariffs imposed by Europe on each nations, the FT report added. The White Home has not but responded to CNBC’s request for remark.
A spokesperson for the European Fee was requested to touch upon Trump’s bid and instructed CNBC on Wednesday that “The EU is engaged with all related international companions, together with India and China, within the context of its sanctions enforcement efforts. This involvement will proceed.”
The committee stated the nineteenth measure pointed to packaging preparations for Moscow, “added new sanctions instruments to focus on avoidance via third nations,” and stated the US was a “crucial accomplice” in Brussels’ efforts to place stress on Russia’s struggle economic system.
timing
India and China, which ask the EU to impose tariffs on Russia’s main power shoppers, had been seen as one other approach to punish commerce with Moscow and put stress on Russia to finish the struggle in Ukraine.
Nevertheless, European officers look like cautious of alienating China and India. And the timing of Trump’s calls for frowned as Washington negotiates a commerce take care of New Delhi.
File Picture: US President Donald Trump meets Indian Prime Minister Narendra Modi on the White Home in Washington, DC on February 13, 2025.
Kevin Lamarck | Reuters
The US has already imposed a 50% tariff on India. This features a punitive responsibility of 25% on Russia’s oil purchases. In line with India, tariffs are “unfair, unfair and unreasonable” and name for EU commerce between the US and Russia.
Eurasia Group founder Ian Bremer stated on Wednesday that the White Home’s newest demand for the EU could be “troublesome to place in Trump’s efforts to succeed in a commerce take care of India and China.”
“It seems to be an try to shift duty for a powerful response to Europe, creating political cowl for America’s inaction by way of sanctions, while avoiding a direct blow to US-China relations.”
“Europe ought to say no.”
It is unlikely that the EU will acquiesce, analysts say. The Bullock not solely takes on Trump’s controversial tariff technique and is cautious of burning its personal bridge with India and China regardless of financial competitors with Asian superpowers, however the EU additionally has a posh buying and selling relationship with Russia.
“Europeans have been unable to separate themselves from Russian power for greater than 5 years because the struggle. Everyone knows in the event that they haven’t been capable of separate themselves from the power of Russia in over 5 years. They’re positive they aren’t going to chop themselves off from the importer of their high items, like hell,” stated Bremer of the Eurasian Group.
US President Donald Trump will shake palms with Russian President Vladimir Putin earlier than a joint press convention following a gathering on the joint base of Elmendorf Richardson in Anchorage, Alaska, on August 15, 2025.
Gavriil Grigorov | Through Reuters
Different analysts stated Europe, not like Trump, is reluctant to impose tariffs as a part of its commerce playbook, and argued that Bullock shouldn’t be drawn into his commerce struggle.
“Nobody in Europe thinks tariffs are an efficient commerce coverage device… Europe will want diplomacy to deal with points relatively than an entire commerce struggle,” Invoice Blaine, founding father of London-based Windshift Capital, instructed within the Morning Porridge e-newsletter on Wednesday.
“The European response have to be “no.” Trump kicked the Hornets’ nest – he’ll take care of the end result,” Blaine concluded.
Russia’s connection
The EU has a posh enterprise relationship with Russia. That is prone to forestall the bloc from punishing different nations for doing enterprise with Moscow, regardless of it being at a a lot decrease degree than earlier than the beginning of the Ukrainian Struggle in 2022, when the EU does so too.
European Fee information exhibits that EU bilateral commerce with neighbors was 67.5 billion euros ($78.1 billion) in 2024, whereas EU imports had been value 35.9 billion euros, dominated by gasoline and mining merchandise. EU exports to Russia totaled 31.5 billion euros in 2024.
The EU is struggling to fully separate Russian gasoline and LNG (liquefied pure gasoline). Russia’s share of EU imports of pipeline gasoline fell from over 40% in 2021 to round 11.6% in 2024, whereas Moscow accounted for lower than 19% of EU pipeline gasoline and LNG imports in 2024.
The US is encouraging European allies to modify to US LNG.
Trump stated the EU had pledged to buy US LNG, oil and nuclear merchandise which are balanced by $750 billion within the subsequent three years as a part of a framework commerce settlement with the US, a 15% tariff imposed on BLOC’s exports to the state.
US Secretary of the Inside Doug Burgham instructed CNBC on Wednesday that the Trump administration is attempting to drive US market share within the European power sector.
“[Exporting] LNG is likely one of the best issues to do. [you can] Please place it on the boat and ship it right here. It’ll change Russian gasoline, drive market share to zero in Europe, and promote US market share. It is nice for America, nice for allies, and we will cease funding Russia’s struggle facet,” he instructed CNBC at Gastech 2025.
