Trump threatens oil sanctions against Russia over Ukraine

Trump threatens secondary tariffs on Russian oil if ceasefire with Ukraine fails, citing anger at Putin’s comments.

In Short

President Trump threatened to impose significant tariffs on Russian oil if a ceasefire in Ukraine isn’t reached, criticising Putin’s comments on Ukraine’s leadership.

He plans to speak with Putin about the situation, noting that sanctions could severely impact the global oil market and inflation.

President Donald Trump expressed anger towards Russian President Vladimir Putin and indicated he may impose secondary tariffs on Russian oil if a ceasefire in Ukraine is not achieved.

In a phone interview, Trump stated he was particularly upset with Putin’s remarks on Ukraine’s leadership situation, suggesting that a new leadership could hinder peace negotiations.

He said he would impose penalties on Russian oil if he believes Russia is responsible for the lack of agreement. Trump mentioned plans to speak with Putin to address these issues.

Oil sanctions

As one of the top three oil producers globally, any sanctions on Russian oil could significantly impact the oil market and increase inflation. Key buyers like India and China could face additional pressures from these sanctions.

Trump proposed a 25% to 50% tariff on oil purchases from Russia, stating, “If you buy oil from Russia, you can’t do business in the United States.”

The US previously announced that Ukraine and Russia had agreed to a ceasefire as part of efforts to halt the conflict. However, Russia is demanding the removal of sanctions on its financial institutions before full compliance.

While Russian crude exports reached a high in March, analysts believe that Trump’s threats need to materialise into tangible action to significantly affect oil prices, as past reactions have shown that real disruptions influence market dynamics.