Trump plans to set up ‘Ukraine victory fund’ with fresh tariffs on China

US President Donald Trump has told a top official to set up a ‘Ukraine victory fund’ to support the country’s war efforts with revenue from fresh tariffs on China.

Since 2022 when Russia launched the full-scale invasion of Ukraine, China has emerged as Russia’s principal supporter and has provided Russia drones, dual-use goods and technology, machinery to make weapons, and a host of consumer goods. In fact, China has sustained the Russian economy, and the consensus has been that Russia would not be able to continue the war without Russian support.

In recognition of such China-Russia partnership, Trump has instructed Treasury Secretary Scott Bessent to join hands with European powers to set up a ‘Ukraine victory fund’ to support the country’s war efforts.

“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,” said Bessent on Wednesday, according to The Telegraph.

“But our Ukrainian or European allies have to be willing to follow. We will respond if our European partners will join us,” Bessent further said.

The Telegraph reported that the plan in the work includes slapping 500 per cent tariffs on Chinese imports and using the revenue to buy weapons for Ukraine.

However, similar plans to punish China —China is also the largest buyer of Russian oil— have previously found some opponents in Europe that have blocked such moves, diplomatic sources told the newspaper.

In recent weeks, Trump appears to have become increasingly frustrated with Russian leader Vladimir Putin’s refusal to agree to a ceasefire or join peace talks. The new strategy appears to be inflicting costs on Putin for continuing the war and bringing him to the negotiating table.

Ready to deliver firepower ’that only the US can do’: Hegseth

At the same time, Defense Secretary Pete Hegseth has said that the United States was ready to deliver the “firepower” needed for Ukraine to achieve “peace through strength”.

Hegseth said that Trump believes in achieving peace through strength. He said that you achieve peace not with words or gestures but with strong and real capabilities that adversaries respect.

Hegseth further said, “Now, if this war does not end, if there is no path to peace in the short term, then the United States, along with our allies, will take the steps necessary to impose costs on Russia for its continued aggression. If we must take this step, the US War Department stands ready to do our part in ways that only the United States can do.”