Donald Trump is planning a Ukraine victory fund that would be paid for by steep new tariffs imposed on China.
Under the proposal, Chinese imports could face a 500 per cent tariff, with the revenue directed to weapons and aid for Ukraine’s armed forces.
The U.S. president has asked Treasury Secretary Scott Bessent to present the new plans to European leaders before Volodymyr Zelensky’s arrival in Washington on Friday.
Bessent told reporters yesterday: ‘President Trump has instructed the ambassador and myself to tell our European allies that we would be in favour of whether you would call it a “Russian oil tariff” on China or a “Ukrainian victory tariff” on China’.
The approach aims to ramp up economic pressure on Putin, whose military relies heavily on Chinese support, and push him toward direct talks with Trump and Zelensky.
According to reports, earlier similar proposals faced scrutiny by European leaders. China, however, has said that its purchase of Russian oil is ‘legitimate’ and accused the US of ‘bullying’.
The new plans come after Ukraine‘s defence minister said the country would need around $120billion to ward off Putin’s attacks for another year.
Trump and Zelensky are set to discuss the shipment of Tomahawk missiles when they meet on Friday. Asked about Ukraine’s request for the weapons, Trump said: ‘They want to go offensive.
‘I’ll make a determination on that, but they would like to go offensive and we’ll have to make a determination.’
Meanwhile, India says it is looking to step up purchases of crude oil and natural gas from the U.S. as it diversifies its energy supplies and confronts criticism by the U.S. over its imports of discounted Russian oil.
Trump said Wednesday that Indian Prime Minister Narendra Modi had personally assured him his country would stop buying Russian oil, in a move that might add to pressure on Moscow to negotiate an end to the war in Ukraine.
Smoke rises from a building on October 13 following Russian strikes on Kostiantynivka, in Ukraine. US leader Donald Trump is planning a ‘victory fun’ for Ukraine that will help it defend against Russia attacks
‘There will be no oil. He’s not buying oil,’ Trump said. The change won’t take immediately, he said, but ‘within a short period of time.’
However, according to state media, Russia’s deputy prime minister Alexander Novak, indicated that he was confident that its energy partnership with India would continue, despite Trump’s remarks.
India is the second biggest buyer of Russian oil after China. Trump cited its purchases from Moscow when he announced 50 per cent tariffs on imports from India in August.
A statement Thursday by India’s foreign ministry did not address Trump’s remarks directly.
It said the government’s consistent priority was to safeguard the interests of Indian consumers in a volatile energy environment.
‘Ensuring stable energy prices and secured supplies have been the twin goals of our energy policy. This includes broad basing our energy sourcing and diversifying as appropriate to meet market conditions,’ said Randhir Jaiswal, a ministry spokesman.
He said the Trump administration had shown interest in deepening energy cooperation and talks on that were underway.
Expanding India’s energy dealings with the U.S. could help India mitigate supply disruptions and align with Washington’s push to reduce global dependence on Russian oil.
Trump indicated yesterday that Indian prime minister Narendra Modi would stop buying discounted oil from Russia. India is the second biggest buyer of Russian oil after China
India’s Trade Secretary Rajesh Agarwal said Wednesday that India was willing to increase its purchases of American oil and natural gas if prices were competitive.
Agarwal told reporters India has been buying around $12-$13 billion worth of crude oil and gas from the U.S. annually and there was room to nearly double that without causing disruptions for Indian refiners.
A team of Indian government officials was visiting the U.S. to discuss a bilateral trade agreement that includes energy cooperation, he said.
‘In discussions we are in, we have indicated very positively that India as a country would like to diversify its portfolio as far as energy imports are concerned. That’s the best strategy for a big buyer like India,’ said Agarwal.
In February, Modi and Trump set a target of finalising the first tranche of a trade agreement by autumn.
Talks were suspended after five formal rounds of negotiations after Trump expressed displeasure over India’s continued purchases of Russian oil. He said that was helping to fuel Moscow’s war against Ukraine.
Trump has been frustrated by his inability to force an end to the war in Ukraine, which began with Russia’s invasion almost four years ago.
He’s expressed dissatisfaction with Russian President Vladimir Putin, whom he increasingly describes as the primary obstacle to a resolution, and he’s scheduled to meet with Ukrainian President Volodymyr Zelenskyy on Friday.
In recent weeks, Modi has engaged positively with Trump’s social media posts, including the one about first stage of a peace deal between Israel and Hamas, suggesting New Delhi is keen to expand cooperation with the U.S.
In turn, Trump called Modi his ‘friend’ and wished him well on his birthday last month.
It comes after Modi was seen strolling hand-in-hand with Putin last month as they arrived at China’s Shanghai Cooperation Organisation summit last month. Their love in display sparked concern that India and Russia had strengthened ties.
Chinese president Xi Jinping photographed in a meeting with his Sri Lankan counterpart on October 14. China has accused the US of ‘bullying’ and says its purchase of Russian oil is ‘legitimate’
On Thursday, China hit back at the US, saying that its purchases of Russian oil were ‘legitimate’ and decried ‘unilateral bullying’ by the United States.
‘China carries out normal, legitimate economic, trade, and energy cooperation with countries around the world, including Russia,’ Beijing’s foreign ministry spokesman Lin Jian told reporters at a regular briefing.
‘The actions of the United States are a typical example of unilateral bullying and economic coercion,’ Lin said.
