Economy

Trump’s Tariff Gambit: Can EU and NATO Sanctions on China and India Curb Putin’s War Chest?

Trump wants NATO to impose 100% tariffs on China and India to pressure Putin over Ukraine.

September 15, 2025, 7:54 PM

The blue and white flag of the North Atlantic Treaty Organization (NATO)

The official flag of the North Atlantic Treaty Organization, a political and military alliance of countries from Europe and North America. By MDL.

Executive Summary

President Donald Trump has proposed that NATO and EU member states impose tariffs of 50-100 percent on China and India to pressure Russia over the Ukraine conflict, due to their continued significant purchases of Russian oil.

Such high tariffs would likely disrupt EU manufacturing, increase production costs, and raise consumer prices, making the bloc potentially hesitant to adopt the proposed measures.

Trump’s authority to impose tariffs faces domestic legal challenges awaiting a Supreme Court decision, while China has rejected the idea, and the U.S. continues trade negotiations with both China and India.

The Story So Far

President Trump’s proposal for NATO and EU members to impose high tariffs on China and India is a strategic move aimed at pressuring Russia to end the conflict in Ukraine, as both nations are significant purchasers of Russian oil, thereby providing crucial financial support to the Russian economy. This push comes despite the potential for severe economic disruption to the EU’s extensive trade with China and amid ongoing domestic legal challenges to Trump’s authority to unilaterally impose tariffs.

Why This Matters

President Trump’s proposal for NATO and EU members to impose tariffs of up to 100 percent on China and India, aimed at pressuring Russia, presents significant economic implications, particularly for the EU, which faces potential disruptions to its vast trade with China, increased manufacturing costs, and higher consumer prices if such measures were adopted. This aggressive tariff strategy also faces hurdles from domestic legal challenges to Trump’s authority in the U.S. and direct rejection from China, underscoring the complexities and potential economic fallout of such a move.

Who Thinks What?

President Donald Trump urges NATO and EU member states to impose tariffs of up to 100 percent on China and India, aiming to pressure Russian President Vladimir Putin to end the conflict in Ukraine by targeting countries that are major purchasers of Russian oil.

The European Union would likely be hesitant to adopt such high tariffs on China and India, as these measures would disrupt manufacturing, increase production costs, and raise consumer prices across the EU, given its significant trade with China.

China, through Foreign Minister Wang Yi, rejects the imposition of tariffs or sanctions, stating that China does not participate in or plot wars and believes that sanctions only complicate problems.

President Donald Trump has urged NATO and European Union member states to impose tariffs of up to 100 percent on China and India. This measure, proposed during a meeting between U.S. and EU officials last Tuesday, aims to pressure Russian President Vladimir Putin to end the conflict in Ukraine. The demand comes as both China and India continue to be major purchasers of Russian oil, which supports the Russian economy.

Trump’s Tariff Proposal and Rationale

Trump’s proposal targets China and India for their substantial imports of Russian oil. China, as the largest buyer of Russian energy, imported 109 million tonnes of crude oil last year, accounting for approximately 20 percent of its total energy imports. India imported 88 million tonnes of Russian oil in 2024, representing about 35 percent of its imports.

While Trump recently applied an additional 25 percent tariff on India for Russian crude imports, his administration has avoided similar tariffs on China amid delicate trade negotiations. To circumvent this, Trump specifically asked NATO to impose significant tariffs on China, ranging from 50 to 100 percent, intending to weaken Beijing’s economic support for Russia.

EU’s Energy Diversification and Trade Dynamics

Europe’s reliance on Russian energy has significantly decreased since the full-scale invasion of Ukraine in February 2022. The EU’s imports of natural gas from Russia, which stood at 45 percent at the time, are projected to fall to just 13 percent this year. Despite this, Trump is advocating for further European action.

The bilateral trade in goods between the EU and China reached approximately 732 billion euros ($860bn) in 2024. The EU recorded a trade deficit with China of around 305.8 billion euros ($359bn) last year, making China the EU’s largest import partner. European imports from China, predominantly consumer electronics, heavy manufacturing equipment, and clothing, represent roughly 40 percent of total goods imports.

In contrast, European goods imports from India are considerably smaller, with the EU running a trade deficit of just 22.5 billion euros ($26bn) in 2024, mainly in electronic equipment, pharmaceuticals, and base metals. Imposing tariffs of 50-100 percent would likely disrupt manufacturing, increase production costs, and raise consumer prices across the EU, making the bloc potentially hesitant to adopt such unilateral punitive measures.

Legal Challenges and International Responses

Trump’s push for allied tariffs coincides with domestic legal challenges to his authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). A U.S. trade court ruled in May that these tariffs “exceed any authority granted to the president,” a decision upheld by an appeals court in August. The case is now awaiting a Supreme Court decision, expected in November.

China swiftly responded to Trump’s September 13 pronouncement, with Foreign Minister Wang Yi stating that China does not participate in or plot wars and that sanctions only complicate problems. U.S. Treasury Secretary Bessent is scheduled to meet with China’s Vice Premier He Lifeng in Madrid to address trade tensions. Regarding US-India relations, Trump expressed optimism about ongoing trade negotiations and anticipated a “successful conclusion” to talks with Indian Prime Minister Narendra Modi.