EU under US pressure: Sanctions on India and China considered

Mumbai, September 16, 2025: The European Union (EU) is currently on the verge of a key decision, which is likely to increase tensions between India and China. Under US pressure, the European Union is considering imposing sanctions on Indian and Chinese companies involved in the Russian oil trade. US President Donald Trump has demanded that the European Union impose tariffs of up to 100% on India and China, which will increase economic pressure on Russia. These developments could have a major impact on international trade and political relations.
Trump's pressure and the EU's dilemma
US President Donald Trump, in his talks with European Union representatives, has demanded strict action against Indian and Chinese companies to put pressure on Russia's oil trade. Trump made this demand in a conference call with the EU's head of Russia sanctions, David O'Sullivan, and other officials. According to him, it is necessary to completely ban Russian oil and gas purchases and impose tough tariffs on India and China. Trump also indicated that the US is ready to impose similar tariffs if the EU supports it.
The EU has already imposed a package of 18 sanctions on Russia, including two Chinese banks and a major refinery in India. However, Trump's new demands pose a difficult situation for the EU. The EU considers tariffs to be different from sanctions and require a lengthy vetting process to be legally binding. European officials have said that imposing tariffs can be risky and that it is more convenient to target specific companies and impose sanctions instead.
Impact on India and China
India and China are major buyers of Russian oil. Both countries have benefited from the cheap price of Russian oil after Russia's invasion of Ukraine. If the EU agrees to Trump's demands and decides to impose sanctions on Indian and Chinese companies, it could have a major impact on the economies of both countries and their trade relations with Russia. This is likely to hit refiners like Naira Energy in India, which has already faced EU sanctions.
India and the EU are currently negotiating a free trade agreement (FTA). In such a situation, this possible move by the EU could create new challenges for India. An EU official also noted that instead of imposing broad tariffs, it is a more viable option to impose sanctions on specific companies and give them the opportunity to lift the sanctions if they stop trading with Russia.
EU’s hesitant stance
The EU has not explicitly rejected Trump’s demand for 100% tariffs, but the likelihood of imposing such tariffs is low, European sources said. According to the EU, tariffs are not an alternative to sanctions and could also harm European companies. Instead, the EU is considering imposing sanctions by focusing on specific companies involved in Russia’s oil trade.