How Trump’s ‘Secondary Tariffs’ on Russia Could Impact the Global Economy: What You Need to Know

Despite facing heavy sanctions, Russia continues to fund its war in Ukraine using its vast energy resources. President Trump recently announced plans for new tariffs targeting countries trading with Russia, pushing for a ceasefire agreement by early August.

India became the first nation to face consequences for buying Russian oil, seeing its imports penalized. If these tariffs take effect, goods from any nation trading with Russia could incur a 100% tax when imported to the U.S.

The stakes are high. Russia is the third-largest oil producer globally, selling to nations including China and India. Trump’s recent statements indicate he believes trade can effectively resolve conflicts. “I used trade for a lot of things, but it’s great for settling wars,” he stated.

Though secondary tariffs have been used before, targeting Russia could have serious implications for the global economy. According to Bloomberg, Russia’s oil exports have been declining, but the potential for rising prices remains. Kieran Tompkins from Capital Economics notes, “The key channel through which secondary tariffs could impact the global economy is through energy prices.” If tariffs reduce oil and gas supplies, prices could spike, similar to the inflation seen after Russia’s full-scale invasion of Ukraine in 2022.

Interestingly, Russia has created a network to circumvent existing sanctions. For example, it operates a “shadow fleet” of tankers to obscure the ownership and origin of its oil shipments, making it challenging to enforce sanctions. Richard Nephew, a sanctions expert, emphasizes that maintaining sanctions can be as complex as implementing them in the first place.

Turning to trade with India, which has become the second-largest buyer of Russian oil since the invasion, Trump imposed a substantial 25% tariff. This could further inflate costs for American consumers, especially for products like iPhones, which are manufactured in India. Affected companies typically pass on tariff costs to consumers, meaning that American buyers may soon see higher prices on electronics.

Beyond India, China presents a more complicated picture. The nation is a significant buyer of Russian oil. Imposing secondary tariffs on Chinese goods would disrupt trade flows heavily and could provoke economic tensions. Trade expert Simon Evenett points out that such measures could further strain U.S.-China relations, particularly since those imports represent a vast array of consumer goods.

As for U.S.-EU relations, the EU still depends on Russian energy, with imports drastically reduced since 2022. However, even under new tariffs for buying Russian energy, the EU remains cautious, as such measures could drastically impact their exports to the U.S.

The repercussions of these tariffs will likely contribute to worldwide economic shifts. Although Russia’s economy has shown some resilience, it faces potential recession due to over-reliance on oil and gas revenue. More than a third of Russia’s government budget stems from these sectors, making the country vulnerable.

In summary, Trump’s tariffs may alter not just U.S. trade but ripple through the global market. While intended to curb Russian aggression and support Ukraine, their effects will resonate far and wide, possibly raising prices for consumers and reshaping economic alliances.

For more details on the interconnectedness of global energy markets and sanctions, you can visit this [Bloomberg analysis](https://www.bloomberg.com/news/articles/2025-07-29/russia-s-oil-exports-are-slowing-by-every-measure).

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