In a bold move, US President Donald Trump signed an executive order on April 2, 2025, announcing new tariffs on nearly all US trading partners. The executive order introduced a 34% tax on Chinese imports and 20% on the European Union. Trump described the day as a "Liberation Day" for the United States, emphasizing that it marked the rebirth of American industry. However, one of the most notable aspects of this tariff package is that Russia is exempted from the new tariffs, despite ongoing tensions between the two countries.

Trump’s Frustration with Putin

Earlier, Donald Trump had expressed significant frustration with Russian President Vladimir Putin, stating that he was "pissed off and angry" at the Russian leader. This anger stemmed from Putin's questioning of the future of Ukrainian President Volodymyr Zelensky, further complicating the already tense relationship between the US and Russia due to the ongoing Russia-Ukraine war. Despite these remarks, Trump decided to exempt Russia from the new tariffs, a decision that raised many eyebrows, considering the strained relations between the two nations.

Trump’s comments reflected a deeper frustration with Russia’s role in the Ukraine crisis, but he made it clear that if he believed Russia was to blame for the bloodshed in Ukraine, he would consider imposing secondary tariffs specifically targeting Russian oil exports. The tariff decision on Russia has sparked widespread debate, given the backdrop of the Russia-Ukraine war and the US-led sanctions imposed on Russia.

Why Was Russia Exempted from New Tariffs?

The decision to exempt Russia from the new tariffs stems from the fact that Russia is already subject to extensive US sanctions, which significantly limit any meaningful trade between the two countries. According to White House Press Secretary Karoline Leavitt, these sanctions have made trade almost impossible, with Russia's trade with the US dropping dramatically from USD 35 billion in 2021 to a meager USD 3.5 billion in 2024. These sanctions, primarily in response to Russia’s invasion of Ukraine, already serve as a major economic deterrent to trade.

Moreover, Russia has requested that some of the sanctions be lifted as part of US-mediated talks. Leavitt further added that Russia could face additional sanctions depending on the future actions of the Kremlin, particularly with regard to its involvement in the Ukraine conflict.

Impact of New Tariffs on Domestic Manufacturing

While the Russia exemption may raise questions, Trump’s new tariffs are aimed at boosting domestic manufacturing in the United States. The President has consistently argued that the US has been taken advantage of by other nations, claiming, “Our country has been looted, pillaged, raped, and plundered” by unfair global trade practices. With the new tariffs, Trump is seeking to protect American industries from foreign competition and promote manufacturing within the US, hoping it will lead to job creation and economic growth.

However, the global impact of these tariffs could be severe. The increase in tariffs will likely lead to higher costs for American consumers, especially in sectors like housing, automobiles, and clothing, which are expected to become more expensive as imports face higher duties. This could put significant strain on the middle class, leading to increased inflation and reduced purchasing power for ordinary Americans.

Additionally, these tariffs could potentially cause friction with America’s global allies, particularly the European Union and China, who are already grappling with their own trade imbalances with the US. The move risks breaking down alliances that have been integral to global peace and economic stability post-World War II.

A Historic Economic Shift?

This executive order marks the beginning of what could be a historic economic shift for the United States. By imposing aggressive tariffs, Trump is challenging the global economic order that has governed trade for decades. The rhetoric used by Trump suggests that the US is no longer willing to accept the status quo and is prepared to upend the systems that have long governed international trade. This aggressive economic approach is likely to have significant long-term consequences, not only for the US but also for the global economy, which could see increased protectionism and potentially higher prices on everyday goods.

As the US-Russia trade continues to decline, Trump’s decision to exempt Russia from the latest tariffs raises questions about the future of US-Russia relations, as well as the broader implications for the global trading system. The move reflects Trump’s balancing act between imposing tariffs to protect domestic interests while trying to manage a delicate diplomatic relationship with Russia amid the ongoing war in Ukraine.

Looking Ahead

The 2025 tariff announcement is likely to be a defining moment in Trump’s second term as President. While domestic manufacturers may benefit from the increased tariffs, the broader global consequences could include higher consumer costs, strained international relationships, and a shift towards more protectionist policies. As these tariffs take effect, the world will closely monitor how the US handles its relationship with Russia, China, and its European allies, as well as the ripple effects of this bold new trade strategy.

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