WASHINGTON – Former President Donald trump is escalating economic pressure on Russia adn India, threatening new tariffs if both nations fail to meet his demands regarding the ongoing conflict in Ukraine and trade imbalances with the United States. The moves come as Trump continues to lay the groundwork for potential trade policies in a second term.
According to the Kremlin, Trump’s special envoy, Steve Witkoff, met with Russian officials in Moscow on Wednesday.This engagement occurred as Trump publicly issued an ultimatum to Russian President Vladimir Putin, demanding a ceasefire agreement with ukraine by Friday, or face “severe tariffs” and other economic sanctions. The specific level of tariffs threatened has not been disclosed, but sources close to the former president suggest they could mirror those imposed during his first term, potentially reaching 25% on certain goods.
Trump’s use of tariffs as a negotiating tactic is well-established. During his previous presidency, he levied tariffs on goods from China, Europe, and other countries, aiming to reshape trade relationships and reduce U.S. trade deficits. Last week, Trump announced plans to impose higher duties on imports from over 60 countries if they do not reach new trade agreements with the U.S. by the Friday deadline. These tariffs are scheduled to go into effect this week, impacting an estimated $200 billion in goods annually.
The focus on India stems from a significant trade deficit. The U.S. recorded a $45.8 billion trade deficit with India in 2023, a 5.9% increase from the previous year,according to data from the Office of the U.S.Trade Representative. Key U.S. imports from India include pharmaceuticals ($12.4 billion in 2023), diamonds ($7.4 billion), and textiles ($5.2 billion). Trump met with Indian Prime Minister Narendra Modi at the White House in June 2024, where they discussed increasing military sales to India – specifically, potential deals involving General Atomics MQ-9B drones valued at over $3 billion – and expanding energy cooperation. The agreement to make the U.S. India’s leading oil and gas supplier is projected to involve an increase of approximately 50% in U.S. energy exports to India over the next five years.
The timing of these announcements coincides with Trump’s ongoing campaign for the presidency and his repeated criticisms of existing trade deals, which he claims have harmed American workers and businesses. He has specifically targeted the North American Free Trade Agreement (NAFTA), replaced by the United States-Mexico-Canada Agreement (USMCA) during his first term, and has indicated a willingness to renegotiate or withdraw from other agreements if re-elected. Economists at the Peterson Institute for International Economics estimate that Trump’s proposed tariffs could lead to a 1% decrease in U.S. GDP and potentially trigger retaliatory measures from affected countries.
The potential impact of tariffs on Russia, however, is complicated by existing sanctions imposed by the U.S. and its allies following Russia’s invasion of Ukraine in February 2022. These sanctions have already substantially restricted trade between the two countries. Further tariffs could primarily affect third-party countries that continue to trade with Russia.
