After weeks of anticipation, US President Donald Trump on Wednesday unveiled his plan for reciprocal tariffs, imposing a baseline 10% tax on nearly all imported goods. Countries deemed “worst offenders” face even higher levies, fueling fears of a global trade war that could drive inflation and stall economic growth in the US and worldwide.
Addressing the White House Rose Garden, Trump, 78, waved a chart showing the broad additional duties imposed on leading US trading partners, such as China, India, Japan, and the European Union. Yet, one obvious omission from the tariff list was Russia.
Why Russia Was Exempt?
Russia’s exclusion from Trump’s list of tariffs caught many by surprise, particularly because the US continues to have trade with Moscow. Asked about Russia’s omission, White House spokesperson Karoline Leavitt said in a statement to Axios that Russia was omitted because current US sanctions already “preclude any meaningful trade.”
Yet, the US has more trade with Russia than with some smaller countries such as Mauritius or Brunei, both of which were slapped with tariffs. Even Ukraine, which is at war with Russia, has a 10% retaliatory tariff.
Trump-Putin Relations: Tough Talk, But Exemptions Remain
Trump’s move to exempt Russia comes in contrast to his recent harsh criticism of Russian President Vladimir Putin. Trump was just last week fuming at Russia’s continued invasion of Ukraine and even threatened further sanctions on Russian oil.
“There will be a 25% tariff on oil and other products sold in the United States, secondary tariffs,” Trump said. He threatened that the new tariffs would go into effect within a month unless Russia complied with a ceasefire.
Even as he publicly raged, Trump has pursued diplomatic options with Moscow to bring the war in Ukraine to an end, perhaps the reason for the exemption.
Who Else Dodged Trump’s Tariffs Blow?
Other countries sanctioned by the US, including Belarus, Cuba, and North Korea, also managed to escape Trump’s tariff strategy. Iran and Syria, however, were not so lucky and were hit with extra tariffs of 10% and 40%, respectively.
The big US trading partners Canada and Mexico were also exempted from the new tariffs. But Trump’s earlier 25% tariffs on imports from these nations, as well as lower tariffs for Canadian energy, will continue to be imposed.
China Takes the Brunt
China, which was already facing a 20% tariff for being accused of participating in unlawful fentanyl supply chains, was dealt a further blow with an extra 34% tariff. This takes the overall duty on Chinese goods to a whopping 54%, further worsening US- China trade relations.
As the new tariffs kick in, the world holds its breath for increased tensions and possible economic fallout, with major US allies and competitors watching Trump’s next step with bated breath.