The plus 25% tariff will go into effect on August 27 and it serves as punishment for importing Russian oil and gas.
Those combined penalties would bring the total tariff on goods imported from the world’s fifth-largest economy to a whopping 50% – among the highest the US charges.
The latest executive order, according to a document posted on the White House website, represents an escalation of his trade battle with New Delhi and his first use of so-called secondary sanctions on countries the US says are fueling Moscow’s war machine.
FYI, oil and gas are Russia's biggest exports, and Moscow's biggest customers include India, China and Türkiye.
Sure, India imports more crude oil from Russia than from anywhere else: Russian oil makes up 36% of the Indian market. Obviously, that has seemingly made India a target of Trump’s ire: on Tuesday, he had vowed to “very substantially” raise tariffs on the country “over the next 24 hours” due to its appetite for Russian oil. And he kept his promise.
I wonder if the US will tariff China and Türkiye accordingly. I certainly don't expect China to roll over and as for Türkiye, I'm not so sure but the country has emerged "positively" by being included in the lowest 15% tier in the new US tariff rates. So, we shall see.
It is worth noting that squeezing Russia’s oil revenues via secondary tariffs also means throttling the flow of its oil into global markets where prices are set.
Russia is just too big to fail! Know that Russia exports 7 million barrels per day of crude and refined products. These are massive amounts that you cannot so easily replace.
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