Trump's secondary sanctions against Russia damage the US economy

Trump's secondary sanctions against Russia damage the US economy

This week, US President Donald Trump sets a new deadline for his plan to move Russia to peace in Ukraine: countries that continue to buy oil from Moscow are to be occupied with new tariffs.

The upcoming measures

Trump's special representative Steve Witkoff will travel to Russia on Wednesday before the deadline later runs this week, according to a representative of the White House.

However, there is a risk that peace in Ukraine will continue to turn out to be unreachable. If Trump continues with his plan, the new measures could also significantly burden the American economy. Analyzes show that more expensive consumer goods, lower profit margins for American companies and possibly higher oil prices could result.

"The punishment for those countries that continue to receive large amounts of Russian energy would significantly affect the US economy," said Clayton Seigle, Senior Fellow for Energy and Geopolitics at the Center for Strategic and International Studies, a non-partisan Think Tank in the USA

consequences for the US economy

weigle warned that the planned tariffs would lead to more inflation in the United States and American companies would be burdened with higher import costs.

Trump announced last month that he would be raised a Counting partners of the USA. Last year, the US economy imported a total of $ 526 billion from these two countries, according to Official us data .

Both Asian countries, after the large -scale invasion of Russia into Ukraine in 2022, increased their purchases of Russian crude oil significantly, which led to the prices sank after western countries had greatly reduced their imports.

India's role and Trump's threats

According to Vortexa, an energy market company, Russian oil is now making 36% of the Indian market, which India has apparently moved into the crosshair of Trump's threats. On Tuesday, he announced that he was "very significant" to increase the tariffs to imports from India in order to take the demand for Russian oil into account.

Additional tariffs on Chinese goods that are already 30% would increase the price of consumer goods in the USA, such as iPhones, Giovanni Staunovo, raw material analyst at UBS Wealth Management. "The US consumer will be upset by these measures," he added.

The risks for Trump and the US economy

china has already had similar experiences. At the beginning of this year, Trump introduced high tariffs to Chinese goods, only to drastically reduce them later during the negotiations on a trade agreement. "Trump gave in quickly because it had an impact on imports to the USA," said Staunovo.

impact on the global oil market

Russia's oil revenues through secondary tariffs also means reducing the flow of its oil into the global markets, where the prices are set.

"Russia is simply too big to fail," Staunovo argued. "Russia exports 7 million barrel of crude oil and refined products a day. These quantities cannot be easily replaced."

Currently, the Russian crude oil exports correspond to about 5% of global consumption, which makes global prices important to the United States. The West Texas Intermediate, a US oil benchmark, was traded over $ 65 per barrel on Tuesday morning.

conclusion

If Trump actually introduces secondary tariffs, they could not be nearly as high as threatened. Seigle from the Center for Strategic and International Studies believes that significantly lower tariffs from 10% to 30% have "more weight" and encourage countries to diversify their oil imports.

"Draconian tariffs are only perceived as bluff - they harm the United States as well as the others," concluded Seigle.