FX.co ★ EU Rules Out Tariffs on India, China Amid Ongoing Trade Talks

The European Union is not expected to implement significant tariffs on India or China, both of which are major purchasers of Russian oil, despite pressure from U.S. President Donald Trump, according to a report by Reuters that cites European Union sources. This week, an EU delegation, including the head of its Russia sanctions division, traveled to Washington to discuss joint measures against Russia in response to its invasion of Ukraine. Reports indicate that President Trump pushed the EU to impose tariffs as high as 100% on India and China to diminish Russian energy income. Although the EU has sanctioned Russian businesses and included two Chinese banks and an Indian refinery in its sanctions package from July, officials emphasized that imposing tariffs involves extensive investigations and legal substantiation. Up to this point, the EU has only imposed war-related tariffs on Russian and Belarusian fertilizers and agricultural products. Additionally, the EU is in the process of finalizing a trade agreement with India, an endeavor they are reluctant to jeopardize.