Donald Trump has reignited tensions with Beijing by threatening tariffs of up to 100% on Chinese goods, linking the move to China’s role in supporting Russia’s oil trade.
The US president argues that by targeting Beijing, Washington can indirectly pressure Moscow to end the ongoing Ukraine war.
Although the strategy sounded appealing to many, China pushes back, and India finds itself somewhat spared from the latest threats, marking a significant shift in the US’s global trade focus.
Read on to find out what Trump’s stance was and the situations that led to it.
Trump’s Tariff Threats and the Logic Behind Them
President Trump’s “attempts” to stop the war between Ukraine and Russia have been a controversial topic and one that is widely discussed between nations.
At the heart of Trump’s argument is the belief that tariffs can be used as leverage to reshape geopolitical behaviour, with the US acting as a powerful pivotal figure, providing a middle ground. Even though this idea is viewed differently under different perspectives, the influence of the US president on global affairs continues to be significant as of 2025.
At the latest venue, he has called on NATO nations to impose 50-100% tariffs on China, framing it as a strategy to choke off Moscow’s oil revenues, which he claims are being bolstered through Beijing’s cooperation.
The US Treasury has already urged G7 partners to consider “meaningful tariffs” not just on China, but initially on India as well. However, the current spotlight has shifted almost entirely onto Beijing, as Washington recalibrates its global trade chessboard.
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Read more on Amid US Tariffs, PM Modi Visits China
Recent Actions Based on Trump’s Tariff
President Trump’s tariff moves have been both bold and unpredictable.
Earlier this year, his administration slapped 50% tariffs on India’s Russian oil imports, alongside escalating duties on Chinese goods. By April, tariffs on Chinese imports spiked dramatically, only to be partly rolled back in May following economic pushback.
The aggressive approach has also drawn scrutiny in the US. Legal challenges have reached the Supreme Court, questioning whether the President has unilateral authority to impose such sweeping trade measures.
The uncertainty only adds to the turbulence of global markets.
China’s Reaction To Trump’s Tariff Threat
Even though the US President made a bold threat, Beijing has firmly rejected Washington’s attempts to link China to the Russia-Ukraine war.
Chinese Foreign Minister Wang Yi dismissed Trump’s stance, saying, “Wars cannot solve problems”.
China stands strong on its stance that it is not a party to the conflict and continues to emphasise dialogue and cooperation through multilateral channels. For Beijing, Washington’s threats are seen as scapegoating, aimed at shifting the burden of responsibility rather than fostering peace.
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Trump’s Tariff Threats Effect on India
India, even though it was a strong supporter of Trump in the past, has experienced the ups and downs of Trump’s tariff policy firsthand.
Earlier, New Delhi faced a 25% tariff on goods and 50% tariffs on Russian oil imports, with Washington branding India a “Kremlin laundromat”. (Implying that India is laundering money through oil trades with Russia).
Trump aides even mocked the conflict as “Modi’s war”, further straining ties.
However, the tide appears to be turning, as at the SCO summit, images of Modi with Xi Jinping and Vladimir Putin raised eyebrows in Washington.
Yet soon after, Trump softened his tone, calling Modi a “dear friend” and praising India. Trump’s latest “Tariff Attack” was directed towards China and has explicitly excluded India from this latest round of threats, and both nations resumed trade talks.
Also Read: US Tariffs: Impact on Indian Economy and Fintech Loans
What This Means for Fellow Indians
For everyday Indians, the softened stance offers some relief.
Tariffs on imports can trigger price hikes, disrupt trade, and increase household costs. By excluding India from his latest threats, Trump opened fresh opportunities for Indian businesses through renewed US trade engagement.
Consumers, too, may avoid the sudden price shocks that come with tariff escalations.
Of course, none of these are practical yet, but they are possibilities and maybe wishful thinking of economic experts.
Financial Planning in Uncertain Times
Tariff wars rarely stay confined to politics, as they ripple into personal finances. Rising costs from disrupted trade can affect everything from fuel to everyday essentials.
That’s why individuals must prepare.
- Use an EMI calculator before splitting expenses, especially if import-heavy goods see price hikes.
- Always run a credit score check to be ready for new credit opportunities as markets shift.
- Consider applying for a loan only when absolutely necessary, to balance short-term shocks with long-term stability.
Conclusion
Trump’s threat to impose tariffs of up to 100% on China directly ties global trade policy to the outcome of the Ukraine war.
While Beijing rejects the link between them and the war, tensions escalate, but India, however, enjoys a diplomatic approach. This mainly comprises resumed trade talks and praise from Washington.
For common people in India, the takeaway is clear: economic relief for now, but global uncertainty still looms large.
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