Trump's Tariffs: A Cause for Global Economic Collapse

US President Donald Trump is unlikely to fulfill his promise to impose 100% import tariffs on trading partners of Russia purchasing Russian oil, Reuters reports. It is noted that the example of Venezuela has shown that such threats are ineffective. Fernando Ferreira, director of geopolitical risks at Rapidan Energy Group, told the agency that secondary tariffs could be an excessively harsh tool against Russia.

“If you are willing to use the 'nuclear option', removing more than 4.5 million barrels a day from the market and breaking trade ties with other countries due to the import of Russian oil, you risk a sharp increase in oil prices and a collapse of the global economy. The imposition of 100% tariffs on countries buying Russian oil could reduce global supply and increase prices. Analysts doubt that Trump will allow this to happen,” he emphasized.

Recall that on July 14, Trump threatened to impose “very strict tariffs” if the Russia-Ukraine conflict was not resolved within 50 days. During this period, Russia is to conclude an agreement regarding Ukraine. Otherwise, at least 100% import tariffs will be imposed on Moscow and its trading partners.