By Anita Hamilton and Adam Clark
President Donald Trump said Monday that he would impose secondary tariffs on Russia of 100% if a peace deal with Ukraine isn't reached in 50 days.
"We are going to be doing very severe tariffs if you don't have a deal in 50 days, perhaps 100%," he said in a meeting with NATO Secretary-General Mark Rutte in the Oval Office.
The secondary tariffs would work by placing a sanction on any country that trades with Russia. For example, the U.S. could slap a 100% tariff on any imports to the U.S. from its trade partners that do business with Russia. Direct U.S. goods trade with Russia was $3.5 billion in 2024, according to the Office of the U.S. Trade Representative, a sharp decline from 2023.
The 100% tariff rate Trump threw out Monday is actually far less than what the Senate is currently considering as part of its Sanctioning Russia Act of 2025. The bipartisan bill would both directly tariff Russian imports to the U.S. at 500% and put the same secondary tariffs on any country that buys Russian oil, uranium, natural gas, or petroleum. A vote could come later this month, Senate Majority Leader John Thune said last week.
If either the bill or Trump's latest threat went into effect, China, India, South Korea, and Turkey would be among the U.S. trading partners most affected by the additional levies.
EU to Keep Negotiating After 30% Tariff Threat
The European Union's top trade negotiator has signaled the bloc will continue trying to reach a deal with the U.S. after President Donald Trump threatened a 30% tariff on goods from the bloc and Mexico over the weekend.
"I intend to speak with my U.S. counterparts again later today, as I cannot imagine walking away without genuine effort," Trade Commissioner Maros Sefcovic said on Monday, The Wall Street Journal reported.
Trump has indicated that he might be open to a different tariff rate with some trade partners whom he sent letters to over the past week. "We're always open to talk," he said Monday.
The EU had already said it would hold off on retaliatory tariffs as it looks to strike a trade deal. EU member states previously approved a package of retaliatory tariffs that would target EUR21 billion ($24.55 billion) worth of U.S. imports, and is working on a second set of levies that could target goods worth up to another EUR95 billion.
The market is likely to assume the new tariff figures suggested by Trump are a negotiating tactic rather than a likely final scenario. He has previously threatened levies of 20% and 50% against the EU.
Chinese Exports Rise but U.S. Shipments Dive
China's export growth accelerated in June, beating market expectations as talks continue between Beijing and Washington over a potential permanent trade deal.
Outbound shipments rose 5.8% in June from a year earlier, China's General Administration of Customs said Monday, up from a 4.8% increase in May.
"Overall, exports have held up better than most forecasters expected through the first half of the year, and contributed to first half [Chinese] GDP comfortably beating very downbeat forecasts from the start of the year," wrote ING economist Lynn Song in a research note on Monday.
Shipments to the U.S. fell by 16.1% compared with a year earlier, a less drastic fall than the 34.5% plunge in May, and a 21% decrease in April.
Write to Anita Hamilton at anita.hamilton@barrons.com and Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
July 14, 2025 16:49 ET (20:49 GMT)
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