Russia Unrattled After Trump's Threat Of 'very Severe Tariffs'

President Donald Trump whitethorn person expected a Russian shudder of fearfulness to shake hands his threat of “very terrible tariffs” connected nan state if it didn’t work together a ceasefire successful Ukraine. Instead, his comments look to person prompted a corporate nationalist shrug.

Calling Trump's statements “very serious,” Kremlin spokesperson Dmitry Peskov said connected Tuesday that Russia needs “time to analyze” them.

But investors successful nan Russian superior who had been gearing up for tougher measures alternatively embraced a 50-day grace play connected tariffs group by Trump connected Monday and nan Moscow Stock Exchange was up by 2.7% aft it opened Tuesday morning.

Oil prices besides fell by much than $1 aft nan announcement, hinting that investors don't deliberation Trump will travel done connected his threat to enforce nan tariffs.

Trump “did not denote immoderate contiguous anti-Russian measures aliases nan confiscation of illegally blocked Russian assets,” Leonid Slutsky, a salient nationalist politician, said connected Telegram Tuesday, adding that nan president was trying to equilibrium Western support for Kyiv while avoiding a confrontation pinch nan Kremlin.

Trump announced the levies on pinch nan shipment of caller weapons to Ukraine during a gathering pinch NATO Secretary General Mark Rutte astatine nan White House connected Monday.

His comments came arsenic a bipartisan measure co-sponsored by Sen. Lindsey Graham (R-S.C.) made its measurement done Congress. If passed, it would activity to enforce 500% tariffs connected countries that bargain Russian lipid and gas.

Praising Trump’s announcement, Graham and his bill’s co-sponsor, Sen. Richard Blumenthal (D-Conn) said successful a connection that “the eventual hammer to bring astir nan extremity of this warfare will beryllium tariffs against countries, for illustration China, India and Brazil, that prop up Putin’s warfare instrumentality by purchasing inexpensive Russian lipid and gas.”

However, Konstantin Kosachev, nan Deputy Chairman of nan Russian Federation Council, nan precocious location of nan country’s parliament, said Graham’s measure made “no sense.” In 50 days, “how overmuch tin alteration some connected nan battlefield and successful nan temper of those successful powerfulness some successful nan U.S. and successful NATO?” he added.

The aftermath of a Russian airstrike connected Kyiv, Ukraine connected July 4.Kostiantyn Liberov / Libkos via Getty Images

And erstwhile Russian President Dmitry Medvedev, a hardliner who often issues over-the-top threats, called Trump’s threat a “theatrical ultimatum” successful a station connected X.

“We’re going to beryllium doing very terrible tariffs if we don’t person a woody successful 50 days, tariffs astatine astir 100%,” Trump said, without providing further details.

After nan announcement, a White House charismatic said Trump's threat of 100% tariffs was referring to Russian goods, arsenic good arsenic secondary sanctions connected different countries that bargain its exports.

The president’s comments awesome a marked displacement successful reside complete his Russian counterpart Vladimir Putin, for whom he has agelong shown admiration. “I’ve known him for a agelong time. We’ve ever gotten on well,” Trump said backmost successful March.

President Donald Trump and Russian President Vladimir Putin successful Helsinki successful 2018.Brendan Smialowski / AFP via Getty Images

Many Western countries person have trim astir of their ain financial ties to Moscow during since Russia launched a full-scale penetration of its smaller neighbor, triggering nan first awesome onshore warfare successful Europe since World War II.

Still, buyers of Russia's crude lipid for illustration China and India person continued financing Moscow’s warfare thorax pinch hundreds of billions of dollars done business pinch nan world’s third-largest lipid producer.

“It’s astir tariffs connected countries for illustration India and China that are buying their oil,” Matt Whitaker, nan U.S. ambassador to NATO told reporters Monday aft Trump’s announcement. “And it really is going to, I think, dramatically effect nan Russian economy.”

Trump’s threats of secondary tariffs are “never going to spell anywhere” arsenic agelong arsenic he is unwilling to enforce costs connected Moscow directly, Keir Giles, a elder chap astatine nan London-based Chatham House deliberation tank, told NBC News Monday.

The tariffs besides consequence upending delicate China-U.S. waste and acquisition talks, according to Liu Baocheng astatine Beijing's University of International Business and Economics.

The “unilateral imposition of punitive waste and acquisition measures...risks creating caller and unnecessary complications,” Baocheng said, adding that nan 100% secondary tariffs intended to unit Moscow could alternatively “severely backfire by undermining world economical stableness and fragmenting world cooperation.”

Most concerning, Baocheng added, was that nan threat comes astatine a delicate juncture successful U.S.-China waste and acquisition relations, wherever secondary tariffs connected Chinese companies aliases sectors that import Russian equipment “would earnestly harm nan vulnerable momentum of dialogue.”

Trump's tariff schedule has besides raised nan stakes for India, which has been negotiating a waste and acquisition woody pinch Washington to spot tariffs connected equipment from India driblet beneath 20%.

India’s External Affairs Minister S. Jaishankar told reporters Tuesday that his state had “been successful touch” pinch Graham complete its concerns and interests connected power and security.

Elsewhere, Europe’s main negotiator Maroš Šefčovič told reporters successful Brussels connected Monday that a 30% tariff connected European equipment would person a “huge effect connected trade.”

“It will beryllium almost intolerable to proceed trading arsenic we are utilized to successful a transatlantic relationship,” Šefčovič said.