US Threatens Russia with Tariffs, Pledges New Weapons Pipeline for Ukraine
President Donald Trump has threatened Russia with "very severe tariffs" if a peace deal for Ukraine is not reached within 50 days, marking a shift in his stance. The announcement came during a meeting with NATO's chief, where a new plan was also discussed for European allies to purchase US military equipment, including Patriot missiles, and transfer it to Ukraine. The move aims to pressure Moscow to negotiate an end to the war, which has seen escalating civilian casualties.
Unpacked:
Imposing high tariffs on Russia could significantly reduce its export revenues, especially from oil, which is a major source of income. The U.S. is considering 100% tariffs and secondary sanctions on countries buying Russian oil, which could disrupt global energy markets and affect countries like China, India, and Türkiye, potentially leading to higher energy prices worldwide.
Russian officials have downplayed the threat, with President Putin stating he is open to peace but only on Russia's terms. Russian media has framed Trump's move as a betrayal, but the Russian stock market actually rose after the announcement, suggesting limited immediate concern among investors.
By having European allies buy and transfer U.S. military equipment like Patriot missiles to Ukraine, the U.S. strengthens NATO’s support for Ukraine, increases Ukraine’s defensive capabilities, and shares the financial and political burden among allies. This approach also reinforces transatlantic defense cooperation and puts additional pressure on Russia.
There is strong bipartisan support in Congress to impose tough measures on Russia, with 85 out of 100 senators co-sponsoring a bill for severe tariffs and sanctions. However, Republican leaders have been waiting for Trump to signal approval before proceeding, indicating his leadership is pivotal in shaping U.S. policy on Ukraine.