US President Donald Trump and European Commission President Ursula von der Leyen announced the US-EU trade agreement and shake hands after a meeting at the Trump Turnberry Golf Club in Turnberry, Scotland on July 27, 2025.
Andrew Harnik | Getty Images News | Getty Images
US President Donald Trump has reportedly called on the European Union to slap up to 100% tariffs on China and India for Russia’s oil purchases.
Trump made the proposal that it was first reported by the Financial Times and confirmed to CNBC by two sources familiar with the issue. The US was also prepared to “reflect” the tariffs imposed by Europe on both countries, the FT report added. The White House has not yet responded to CNBC’s request for comment.
A spokesperson for the European Commission was asked to comment on Trump’s bid and told CNBC on Wednesday that “The EU is engaged with all relevant global partners, including India and China, in the context of its sanctions enforcement efforts. This involvement will continue.”
The committee said the 19th measure pointed to packaging preparations for Moscow, “added new sanctions tools to target avoidance through third countries,” and said the US was a “very important partner” in Brussels’ efforts to put pressure on Russia’s war economy.
timing
India and China, which ask the EU to impose tariffs on Russia’s major energy clients, were seen as another way to punish trade with Moscow and put pressure on Russia to end the war in Ukraine.
However, European officials appear to be wary of alienating China and India. And the timing of Trump’s demands frowned as Washington negotiates a trade deal with New Delhi.
File Photo: US President Donald Trump meets Indian Prime Minister Narendra Modi at the White House in Washington, DC on February 13, 2025.
Kevin Lamarck | Reuters
The US has already imposed a 50% tariff on India. This includes a punitive duty of 25% on Russia’s oil purchases. According to India, tariffs are “unfair, unfair and unreasonable” and call for EU trade between the US and Russia.
Eurasia Group founder Ian Bremer said on Wednesday that the White House’s latest demand for the EU would be “difficult to put in Trump’s efforts to reach a trade deal with India and China.”
“It appears to be an attempt to shift responsibility for a strong response to Europe, creating political cover for America’s inaction in terms of sanctions, whilst avoiding a direct blow to US-China relations.”
“Europe should say no.”
It’s unlikely that the EU will acquiesce, analysts say. The Bullock not only takes on Trump’s controversial tariff strategy and is wary of burning its own bridge with India and China despite economic competition with Asian superpowers, but the EU also has a complex trading relationship with Russia.
“Europeans have been unable to separate themselves from Russian energy for more than five years since the war. We all know if they have not been able to separate themselves from the energy of Russia in over five years. They are sure they are not going to cut themselves off from the importer of their top goods, like hell,” said Bremer of the Eurasian Group.
US President Donald Trump will shake hands with Russian President Vladimir Putin before a joint press conference following a meeting at the joint base of Elmendorf Richardson in Anchorage, Alaska, on August 15, 2025.
Gavriil Grigorov | Via Reuters
Other analysts said Europe, unlike Trump, is reluctant to impose tariffs as part of its trade playbook, and argued that Bullock should not be drawn into his trade war.
“No one in Europe thinks tariffs are an effective trade policy tool… Europe will prefer diplomacy to address issues rather than a complete trade war,” Bill Blaine, founder of London-based Windshift Capital, told in the Morning Porridge newsletter on Wednesday.
“The European response must be “no.” Trump kicked the Hornets’ nest – he’ll deal with the outcome,” Blaine concluded.
Russia’s connection
The EU has a complex business relationship with Russia. This is likely to prevent the bloc from punishing other countries for doing business with Moscow, despite it being at a much lower level than before the start of the Ukrainian War in 2022, when the EU does so too.
European Commission data shows that EU bilateral trade with neighbors was 67.5 billion euros ($78.1 billion) in 2024, while EU imports were worth 35.9 billion euros, dominated by fuel and mining products. EU exports to Russia totaled 31.5 billion euros in 2024.
The EU is struggling to completely separate Russian gas and LNG (liquefied natural gas). Russia’s share of EU imports of pipeline gas fell from over 40% in 2021 to around 11.6% in 2024, while Moscow accounted for less than 19% of EU pipeline gas and LNG imports in 2024.
The US is encouraging European allies to switch to US LNG.
Trump said the EU had pledged to purchase US LNG, oil and nuclear products that are balanced by $750 billion in the next three years as part of a framework trade agreement with the US, a 15% tariff imposed on BLOC’s exports to the state.
US Secretary of the Interior Doug Burgham told CNBC on Wednesday that the Trump administration is trying to drive US market share in the European energy sector.
“(Export) LNG is one of the easiest (can) put it on a ship and send it here. It replaces Russian gas, drives market share to zero in Europe, drives US market share. It’s perfect for the US.
