Trump’s sanctions on Russia would be ‘extremely painful’ for US and risk global oil price spike, experts warn
Economic experts share potential impact of Trump’s sanctions on Russia
- Donald Trump has threatened to impose 100 per cent “secondary tariffs” on countries that continue to trade with Russia if a Ukraine peace deal is not agreed within 50 days.
- Industry experts warn that these proposed sanctions would be “extremely painful” for the United States and would cause a significant global spike in oil prices, leading to increased inflation.
- The tariffs would target major buyers of Russian oil, such as India, China, and Turkey, aiming to remove Russian oil, a crucial source of income for Moscow, from global markets.
- Despite the threat, experts express doubt that Trump will implement the tariffs in their proposed form, citing the severe economic damage they would inflict on the US and the global economy.
- An analyst suggests that closing existing loopholes in US sanctions, such as banning the import of oil products from refineries using Russian crude, would be a more effective way to diminish Russia’s war chest.