US President Donald Trump will use a 60-day period to assess the consequences of the possible implementation of new sanctions against Russia and related tariffs, Secretary of State Marco Rubio told reporters. The analysis will cover both the global economy and the United States economy.
“The president wants to use this 60-day period to analyze what the imposition of sanctions and tariffs will mean for the global economy and even for the US economy“, Rubio said.
The decision comes after Trump temporarily suspended the implementation of a broad package of sanctions against the Russian economy. The president signed the law in September, but on October 16 issued an executive order that put the measures on hold, citing national interest. This happened two days before the deadline for the main provisions to come into force.
Tariffs of up to 100% for buyers of Russian energy
The law, named after the late Senator Lindsey Graham, provides for increased pressure on Russia and sanctions against its representatives, banks and tankers from the so-called “shadow fleet“. It allows for tariffs of up to 100% to be imposed on goods from the five largest importers of Russian oil or natural gas.
The measures could also affect countries that continue to buy Russian energy resources. Among them is India, which has increased imports of Russian oil since the start of the war in Ukraine. According to Reuters, the law requires the imposition of tariffs within 30 days under certain conditions, including on new purchases of Russian oil or gas.
Rubio stressed that India has been voluntarily diversifying its energy supplies, but still receives significant amounts from Russia. “It is difficult to change everything overnight, and India remains an important ally and partner of the United States,“ he said.
Energy markets are the main reason for the pause
According to the secretary of state, Washington must take into account the state of global energy markets before choosing a combination of sanctions and tariffs. Rubio pointed to the war around Iran and tensions in the Strait of Hormuz, the Houthi attacks on Saudi Arabia and attacks on energy infrastructure in the war between Russia and Ukraine.
All of these factors affect the price of oil and other energy resources, Rubio argued. According to him, simultaneously restricting Russian energy exports and imposing tariffs on major buyers like India could have consequences far beyond relations between Washington and Moscow.
In parallel with the decision to pause, Trump announced an agreement for diesel supplies from Russia, presented as a measure to limit the rise in fuel prices. According to the Associated Press, the agreement provides for an initial delivery of more than 300,000 tons, another 500,000 tons in November and 1 million tons at a later stage.
After the 60-day period expires, the Trump administration must consider whether and in what form to apply the sanctions and tariffs. Until then, the package remains temporarily suspended.
Sources: apnews.com, nampa.org