Trump Ready To Hit China, India With 100% Tariffs To Pressure Putin, But Only If Europe Joins

In a curious reverse twist on a global trade war theme, President Trump told European officials he would impose draconian and sweeping new tariffs on India and China to push President Vladimir Putin to the negotiating table with Ukraine, but on one condiciont – EU nations do so as well.

Trump made the ask when he called into a meeting with senior US and EU officials in Washington, Bloomberg and FT reported citing people. The US is willing to mirror tariffs imposed by Europe on either country, one of the people said.

The proposal, which will never be accepted, amounts to a very public dare for Europe and is meant to show who really is the bad guy in the public perception war, given that several nations – including Hungary – have blocked more stringent EU sanctions targeting Russia’s energy sector in the past. Such measures would require the backing of all member states. 

Other potential measures discussed by US and EU officials include further sanctions on Russia’s shadow fleet of oil tankers as well as restrictions on its banks, financial sector and major oil companies, according to the people. Trump’s suggestion, first reported by the Financial Times, comes after his deadline for Putin to hold a bilateral meeting with Ukraine’s Volodymyr Zelenskiy passed without indication that the Russian leader – who is now advancing rapidly deep inside Ukraine territory and may be knocking on Kiyv’s door soon – has any interest in engaging in face-to-face peace talks. Instead, Moscow has stepped up its Ukraine bombing campaign, with a strike Tuesday killing at least two dozen pensioners as they collected payments in eastern Ukraine.

According to Bloomberg, any US action would ultimately depend on Trump, who has so far refrained from punishing Russia directly despite skating through several self-imposed deadlines and Putin’s continued reluctance to negotiate an end to the war. Trump has, however, already doubled tariffs on India to 50% over its continued purchase of Russian oil. He has so far refused to punish China for doing as much energy trade with Russia as India. 

Later Tuesday, Trump wrote a social media post that the US and India were continuing negotiations to address their trade barriers, and expressed optimism the two would reach an agreement to resolve their dispute. He also said he looked forward to “speaking with my good friend” Prime Minister Narendra Modi in the coming weeks.

Trump’s tariff proposal contrasts with a softer tone he has taken in recent months on China as part of apparent efforts to secure a summit with President Xi Jinping and a trade deal with the world’s second-largest economy. Last month, he extended a pause on higher tariffs on Chinese goods into early November, a move that stabilized trade ties.

And yet, offering a token olive branch has done nothing to alienate Russia and China, which last week swore loyalty to each other during the 80 year anniversary of World War II. Signaling Xi’s defiance against attempts at isolating Putin, Russia last week announced China had signed an agreement on the Power of Siberia 2, a vast energy pipeline that Beijing had sought to delay for years. That came after photos of Xi, Putin and Modi smiling and holding hands at a summit in Tianjin were beamed around the world.

Chinese Foreign Ministry spokesman Lin Jian said his country had always adhered to an “objective and fair stance” on the war in Ukraine, when asked at a regular press briefing in Beijing on Wednesday about Trump’s latest tariff proposal. 

“China is not the creator of this crisis, nor is it a party involved,” he said. “We firmly oppose using China to make excuses and exerting so-called economic pressure.”

Xi would retaliate against any escalation. Chinese exports have shown resilience despite a 55% levy on shipments to the US, indicating Beijing has room to withstand more pain. For Trump, returning to tit-for-tat moves risks destabilizing China’s supply of magnets that are critical to American manufacturing of everything from mobile phones to missiles.  Such a scenario could also jeopardize a meeting between Trump and China’s top leader that both nations are working to arrange, and could take place as soon as next month on the sidelines of a major summit in South Korea.