Toning down his conciliatory outlook towards US-Russia Relationships, POTUS leans towards a slight conflict in his usual way, confirming an ‘extra’ 25% tariff on all Russian crude oil exports. Implying his indignation on the issue, feisty Trump takes an approach of annoyance towards Putin’s entanglement in the Ukrainian bloodshed, taking a stance that might yet prove to be another hurdle in the ‘Peace Talks’.
Donald Trump Decides to Put Secondary Tariffs
Trump expressed his impatience to Kristen Welker on April 1, 2025, on the “Meet the Press” show on the issue and suggested a similar action regarding Iran as well. “If Russia and I are unable to make a deal” Trump added “on stopping the bloodshed in Ukraine, I am going to put secondary tariffs on oil” he concluded, saying “If it was found it was Russia’s fault”. A strategy well analyzed in Trump’s first tenure as the US president, Secondary tariffs enlist transaction distortions, and freezing assets in US banks, which particularly concern the Trading party involved in trade, on which the constraints are levied.
During the Biden Administration, such action were more or less selective towards private institutions that depended upon Russian imports, and fainly caused any interference in the financial growth of Russia, and rather imploded the heavily dependent EU energy import prices; especially during a harsh winter.
After the fervid and intense interaction between Trump and Volodymyr Zelensky this February 28th, cornering into a futile output, Trump accused his Ukrainian counterpart as a “Dictator” disclosing his inclination towards Putin, adding to the EU’s concerns
However, now Trump said he was “very angry” also adding “pissed off” when Vladimir Putin questioned the Ukrainian president Zelensky’s leadership. However geopolitical analysts claim this move to be a secluded tactic to woe Zelensky while he tries to hedge the ‘Ukrainian Natural resources for US Arms’ trade, which is to be discussed further during the possible Peace talks in the future
Trump Vs Putin: Effect On Russia
Cementing his usual 25% global tariffs, Trump claimed that these newly threatened tariffs would culminate into a total of 50%tariffs on Russia on all oil. The European Partners of the US, who tethered vigilance, being wary of Trump’s denumbing Foreign policy changes might enact a milder response towards the US. Russia however is yet to reply to these threats. Trump’s mercurial and inconsistent stances on global trade have already started to take a toll on the world’s various share markets, evidently plunging oil prices to a further 2% high due to Iran-Russia supply apprehension. However, OPEC+ countries have ensured their commitment to increase production from April, to alleviate some solicitude regarding increasing demand in the coming times.
Effect On Russian Oil Buyers
Considering the fact that the two Asian giants China and India are the only remaining targeted buyers of Russian crude, Trump’s secondary tariffs appear to be intensely persuasive for the buyers to ‘diversify’ their sources, pertaining to the further dent Russian oil could cause into their Energy trade. China being the largest buyer of Iranian oil is unlikely to budge to these concerns but might consider downplaying the risk that could possibly outweigh the benefits. This comes at a time when US forces are increasingly deploying at their Indian Ocean base of Diego Garcia aiming at a possible conflict with Iran.
India on the other hand is in an uncomfortable position to bargain further concessions regarding their Russian energy sources, especially with their ongoing trade deal talks with US counterparts. Indian economics indicate that talks regarding the proposal to undertone import duties on US liquified natural gas are underway to bolster a decrease in trade disparities.
Since Oil prices are a general concern and an essential key for cost limitation in all Industrial output, secondary tariffs could make it difficult for Trump to maintain his promise of cheaper oil rates during his campaigns.
Discussion about this post