Russia says ‘work ongoing’ with US after Trump says he’s ‘offended’ with Putin

On Sunday, Trump threatened “secondary tariffs” on Russia if it would not comply with a ceasefire with Ukraine. Let’s unpack that somewhat.

What did Trump say?

“If Russia and I are unable to make a deal on stopping the bloodshed in Ukraine, and if I feel it was Russia’s fault , which it may not be… I’m going to place secondary tariffs… on all oil popping out of Russia,” the US president advised NBC Information.

“That might be that for those who purchase oil from Russia, you’ll be able to’t do enterprise in america,” Trump added. “There shall be a 25% tariff on all oil, a 25 to 50-point tariff on all oil.”

He additionally described it as a “25% tariff on oil and different merchandise offered in america, secondary tariffs”.

What’s a secondary tariff?

When a authorities imposes commerce tariffs it means it’s taxing the importer of products. It is successfully an entrance payment for merchandise, often set at a proportion of their worth.

This isn’t the primary time Trump has talked about utilizing “secondary tariffs”. He seems to imply a tariff positioned on a rustic as a result of it does enterprise with one other nation – on this case Russia.

So Trump seems to be threatening to impose a 25% to 50% tariff on merchandise introduced into the US from international locations that buy Russian oil. The largest consumers of Russian oil are China and India.

What change would this make?

In March 2022, the US mentioned it was banning the import of just about all Russian vitality merchandise. Different Western international locations have issued related sanctions.

And the US has a wider – and extremely complicated – sanctions regime in opposition to Russia. Its intention, partially, is to make it tougher for Russia to purchase and promote merchandise, and scale back how a lot cash it may well make.

The secondary tariffs Trump is suggesting would make it tougher for Russia to promote oil – as purchasers can be conscious of damaging their commerce with the US.