Financial encyclopedia

US President Trump recently stated that he is considering imposing a secondary tariff of 25% to 50% on countries that purchase Russian oil. This move has drawn international attention as the policy is not directly targeting Russia but rather pressuring third parties that purchase energy from Russia, thereby increasing diplomatic leverage and reshaping the global energy trade landscape. 

What is "secondary tariff"? 

The "secondary tariff" is an indirect sanction measure, imposing additional tariffs on third-party countries such as China, India, and Turkey that purchase Russian oil, in an attempt to undermine Russia's economic interests. 

What is the policy motivation? 

Trump believes that Russia's energy revenues fund its military operations. By pressuring its trading partners, it can weaken its financial capacity. This move also aligns with his "America First" stance and demonstrates a tough attitude towards foreign policy and energy policy. 

Who will be most affected? 

China and India are highly dependent on Russian oil. If they are taxed, they will face rising import costs. Even though Europe has reduced its reliance, if global supply chains are disrupted, oil prices may fluctuate, adding to the pressure on the global economy. 

What will be the subsequent impact? 

If the policy is implemented, it may trigger retaliatory trade measures, and the affected countries are more likely to seek to bypass dollar settlement and accelerate the process of de-dollarization. In the long run, it may shake the United States' economic influence globally. 

The "secondary tariff" is a strategy that weaponizes economic policies. Its short-term effects may work, but whether it can stabilize the international order in the long run remains to be seen.