TU.S. President Donald Trump and President of the European Fee Ursula von der Leyen shake palms as they announce a US-EU commerce deal after a gathering at Trump Turnberry golf membership on July 27, 2025 in Turnberry, Scotland.
Andrew Harnik | Getty Photos Information | Getty Photos
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 Instances and confirmed to CNBC by two sources accustomed to the matter — when he was referred to 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 advised CNBC Wednesday it couldn’t disclose assembly particulars as a consequence of confidentiality, noting, “The EU has engaged with all related international 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 towards 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 companion” in Brussels’ efforts to pile stress on Russia’s conflict economic system.
Timing
Asking the EU to impose tariffs on key Russian power purchasers India and China was seen as one other technique to punish their commerce with Moscow and put stress on Russia to finish the conflict 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 deal with New Delhi.
FILE PHOTO: U.S. President Donald Trump meets with Indian Prime Minister Narendra Modi on the White Home in Washington, D.C., U.S., February 13, 2025.
Kevin Lamarque | Reuters
The U.S. has already imposed a 50% tariff on India, which features a 25% punitive obligation 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, advised CNBC Wednesday that the White Home’s newest demand on the EU was “arduous to sq. with Trump’s efforts to get to a commerce take care of India and China, which he prioritizes over getting a ceasefire in Ukraine (not to mention issues like Transatlantic collective safety and deterrence),” Bremmer stated in emailed feedback to CNBC.
“It seems extra like an try and shift accountability 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.”
‘Europe ought to say no’
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 capable of wean themselves off Russian power themselves greater than 3.5 years into the conflict, they certain as hell aren’t going to chop themselves off from their prime items import provider,” Eurasia Group’s Bremmer said.
U.S. President Donald Trump shakes palms with Russian President Vladimir Putin earlier than a joint information convention following their assembly at Joint Base Elmendorf-Richardson in Anchorage, Alaska, U.S., August 15, 2025.
Gavriil Grigorov | By way of Reuters
Different analysts famous that Europe, not like 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 software … Europe would favor diplomacy to deal with points, somewhat than outright commerce conflict,” Invoice Blain, market strategist and founding father of London-based Wind Shift Capital, stated in his Morning Porridge publication on Wednesday.
“Europe’s response ought to be ‘no.’ Trump kicked the hornets nest – let him take care of the implications. However let’s have a look at what occurs,” Blain concluded.
Russia connection
The EU has a sophisticated buying and selling relationship with Russia. That is more likely to forestall the bloc from punishing different nations for doing enterprise with Moscow, when the EU does so too — albeit at a far decrease degree than earlier than the Ukraine conflict started in 2022.
The EU’s bilateral commerce with its neighbor stood at 67.5 billion euros ($78.1 billion) in 2024, in accordance with European Fee knowledge, with the EU’s imports have been price 35.9 billion euros and dominated by gasoline 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 stated the EU had pledged, as a part of its framework commerce take care of 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 subsequent three years.
U.S. Secretary of Inside Doug Burgum advised 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 conflict,” he advised CNBC at Gastech 2025.