President Donald Trump’s proposal for 100% tariffs on India and China is a clear example of a global shakedown, explicitly using the power of trade as a weapon to achieve geopolitical goals. The plan is not about protecting jobs or balancing trade deficits; it is a raw exercise of economic power aimed at forcing Russia to end its war in Ukraine.
The strategy, laid out for EU officials, is to hold the export-oriented economies of India and China hostage. The implicit threat is that unless they curtail their support for Russia, their access to the massive markets of the US and the EU will be cut off by a prohibitive 100% tariff.
The US has made it clear it wants the EU to be its partner in this shakedown. An administration official stated that they are “ready to go” but will only proceed if their European allies join them, seeking to maximize the pressure and lend international legitimacy to this coercive tactic.
This use of trade as a weapon is a high-risk strategy that could have unintended consequences, including a global recession. It is also a strategy that may not be legal. A pending Supreme Court case will determine if Trump can continue to wield this economic weapon, or if his authority will be stripped away by the judiciary.