EU Rejects Trump’s Call for 100% Tariffs on India-Here’s Why
The European Union is not going to follow US President Donald Trump’s recommendation to impose 100% tariffs on China and India, the two largest purchasers of Russian oil, in order to put pressure on President Vladimir Putin. On Tuesday, Trump made a direct appeal to EU sanctions envoy David O’Sullivan and other officials. The delegation from the European Union visited Washington to engage in discussions regarding the coordination of sanctions against Russia, in light of its comprehensive invasion of Ukraine in 2022.
The report indicated that the European Union has yet to commence discussions about possible tariffs with India or China. The European Union distinguishes between tariffs and sanctions in its approach. Sanctions are imposed only following a thorough investigation, a process that typically spans several months to ensure a legally sound justification is established. To date, the European Union has exclusively enacted tariffs on fertilisers and agricultural products from Russia and Belarus as part of its response to the Ukraine conflict. The report, referencing another European Union source, indicated that implementing such tariffs carries significant risks and may be deemed excessively broad. It further noted that focusing sanctions on specific entities would be a more straightforward approach, allowing for the possibility of lifting those sanctions should they cease their business dealings with Russian entities. In early July, the bloc enacted comprehensive sanctions against Russia, as well as targeting India’s Nayara oil refinery and two banks in China.
Additionally, the bloc is currently in the process of finalizing a trade agreement with New Delhi, as discussions are taking place this week. The aim is to address their disagreements concerning agriculture, dairy, and non-tariff barriers in order to achieve an ambitious deadline for a deal by the end of the year. Over the last twenty years, total trade between India and the European Union experienced an impressive increase of 300 per cent. In 2024, India emerged as the seventh trading partner of the European Union globally, with imports totaling €71.281 billion. Additionally, it held the position of the European Union’s 10th goods export partner, contributing exports valued at €48.771 billion. Conversely, the European Union bloc ranked as India’s fourth-largest trading partner globally, with imports totaling €45.286 billion. The bloc secured its position as India’s second-largest trading partner, with exports valued at €74.291 billion.
The Press Information has reported that India’s bilateral trade in goods with the EU reached $137.41 billion in 2023-24, establishing the EU as India’s largest trading partner in goods. Furthermore, the bilateral trade in services between India and the EU was estimated at $51.45 billion in 2023. The European Union imports from India primarily include machinery and appliances, chemicals, base metals, mineral products, and textiles. Conversely, the bloc’s principal exports to India are machinery and appliances, transport equipment, and chemicals, according to data from the European Union website. The India-Middle East-Europe Economic Corridor was inaugurated during the G20 Summit, which took place in September 2023 in New Delhi.
The corridor represents a crucial initiative, traversing Marseille along the Mediterranean Sea. The Indian government has formalized a Memorandum of Understanding with the United States, the United Arab Emirates, Saudi Arabia, France, Germany, Italy, and the European Union. The corridor seeks to connect India, Europe, and the Middle East through the UAE, Saudi Arabia, Jordan, Israel, and the European Union. However, no progress has been made thus far due to the ongoing conflict in Gaza.
