Talks between US and European officials on how to pressure Russia to end its war with Ukraine appear to have gained momentum after Russia flew drones into Polish airspace on Wednesday.
That incident – the first time a NATO member has been threatened during the war – looks to have hardened resolve in Brussels and across the Continent that more must be done to punish Russia’s principle economic backers – China and India.
In talks on Tuesday, US President Donald Trump told EU officials that they – and the US – should impose tariffs of up to 100% on China and India to pressure Russian President Vladimir Putin to end the Ukraine war, according to a US official, who requested anonymity to discuss private talks.
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China and India are major purchasers of Russian oil and, as such, they play a vital role in keeping Russia’s economy afloat as it continues to pursue its expanded invasion of Ukraine, which began in 2022.
Trump made the request, which was conveyed via a conference call, to EU sanctions envoy David O’Sullivan and other EU officials. The EU delegation is currently in Washington to discuss sanctions coordination.
An EU diplomat said the US indicated it was willing to impose similar tariffs if the European Union heeded Trump’s request.
“They are basically saying: We’ll do this, but you need to do it with us,” the diplomat said.
The US request, if heeded, would result in a change of strategy for the EU, which has preferred to isolate Russia with sanctions rather than tariffs.
Chinese refineries may be sanctioned
But after the drama in Poland, the European Commission said it was considering listing some independent Chinese refineries in its 19th package of sanctions against Russia over its invasion of Ukraine, EU officials who asked not to be named said.
The Commission may propose the new package as soon as Friday after an EU delegation returns from sanctions talks in Washington.
The EU is ramping up the size of third-country companies it lists from small, unknown shell companies moving dual-use goods to Moscow to established entities that aid Russia in circumventing Western restrictions.
In its 18th package, the EU listed two Chinese banks and India’s major Nayara Energy refinery at Vadinar.
The next proposal is also expected to list banks in two central Asian countries.
The EU has been eyeing some Chinese refineries since the summer for possible Russian oil purchases from the already sanctioned shadow fleet. The sources did not provide further detail.
EU sanctions require unanimity from member states in order to pass.
Meanwhile, Indian officials in New Delhi said they don’t believe the EU is planning any sanctions against India, as it had been assured that no negative surprise will derail the ongoing trade talks with the EU.
Don’t discuss our support for Russia: China
China, meanwhile, firmly opposes the US applying such so-called economic pressure, its foreign ministry said at a regular press briefing on Wednesday, adding that it also opposed discussion about China’s economic support for Russia.
Trump has frequently threatened to impose tariffs on India and China as punishment for their purchases of Russian crude.
While Trump did hike tariffs on India over the summer by 25 percentage points in part due to its economic relationship with the Kremlin, Trump has yet to pull the trigger on the more punishing options he has floated.
At times, he has complained that Europe itself has not fully decoupled from Russia, which supplied about 19% of EU gas imports last year, although the bloc says it is committed to fully ending its dependency on Russian energy.
Trump eager for trade deal
Later on Tuesday, Trump suggested that the US could, in fact, boost trade with India, writing in an evening social media post that the US and India are working to address trade barriers between the nations. And he was looking forward to speaking with Indian Prime Minister Narendra Modi.
US President Donald Trump said on Tuesday his administration is continuing negotiations to address trade barriers with India and that he would talk to Prime Minister Narendra Modi, in a sign of a reset after weeks of diplomatic friction.
Trump, in a marked shift of tone, said he looked forward to speaking to Modi in the “upcoming weeks” and expressed optimism that they could finalize a trade deal.
“I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries,” he said in a post on social media.
Teams working on a deal: Modi
Modi reciprocated the optimism in a social media post on Wednesday, saying Washington and New Delhi “are close friends and natural partners.”
He said teams from both countries are working to conclude the trade discussions at the earliest.
“I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people,” Modi said.
The latest comments from both leaders drove India’s shares up over 0.5%.
Trump had promised for months that the two sides were close to clinching a trade deal, only to double new tariffs on Indian imports to 50%, sparking questions about the future of the US-India relationship, which had strengthened in recent years, including during Trump’s first term.
Over the past few weeks, Trump and his top officials have criticised India for buying oil from Russia and said that India was funding the war in Ukraine, a charge New Delhi denies.
The discord with the US has coincided with India warming up to China. Late last month, Modi made his first visit to China in seven years for a summit hosted by Chinese President Xi Jinping and was seen holding hands with Russian President Vladimir Putin.
“While the social media statements by Trump and Modi signal a potential rapprochement between the US and India, it is still premature to assume that a resolution will arrive swiftly,” Madhavi Arora, economist at Emkay Global, said.
“With Trump, we will need to wait for more concrete signals that a deal is in the offing.”
Talks seen restarting in weeks
Indian and US trade officials are likely to plan visits to restart in-person trade talks in September, CNBC-TV18 reported, citing sources. A planned visit by US trade negotiators to New Delhi from August 25-29 was cancelled, after trade talks hit major roadblocks.
India’s trade ministry declined to comment on the report of a new round of meetings between trade negotiators.
US-India two-way goods trade totaled $129 billion in 2024, with a $45.8 billion US trade deficit, according to US Census Bureau data.
Trump last week said India had offered to reduce its tariffs on US goods to zero, adding that the proposal was late and the South Asian country should have lowered its duties years ago.
Reuters with additional editing by Jim Pollard
NOTE: The headline & image on this report were changed and lead paragraphs updated on Sept 10, 2025 (with details of possible EC sanctions).
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