On July 14, US President Donald Trump announced that he would impose an extremely harsh tax rate, up to 100% on countries that continue to trade with Russia if Moscow does not reach a peace agreement for the Ukrainian conflict within the next 50 days.
Mr Trump blamed his predecessor Joe Biden for dragging Washington into the conflict, saying the US has spent about $350 billion in aid to Ukraine.
The statement was made during a meeting with NATO Secretary General Mark Rutte at the Department of Transport, White House. We and I personally are very unhappy with Russia. If there is no agreement within 50 days, tariffs will be implemented, at a very high level, which can be called secondary sanctions, Trump said.
The US president stressed that he would use trade policy as a tool to pressure and promote peace. "I use commercialism for many things. But this is a great tool to end wars, he said.
According to a White House official, the secondary tax Trump mentioned is not only aimed at Russia but also at countries that are buying Russian oil, such as China and India, with the goal of tightening economic vongides and isolating Moscow.
Mr. Trump noted that sanctioned tariffs do not require approval by the US Congress. Meanwhile, a bill to tighten sanctions against Russia is awaiting a Senate vote next week. However, Mr. Trump said: Im not sure its necessary, but its good for them to do it. It could be very helpful.
Shortly after Trump's statement, the Moscow stock exchange rose nearly 3%, suggesting the market was hoping for a peaceful deal or believed that the tax measure might not be as severe as threatened.
In a parallel move, President Trump announced a new plan: the US will transfer weapons to Ukraine through NATO, with NATO responsible for payment and distribution. He said: "We have reached an agreement today. We will send weapons, and they will pay.
The weapons could include patriot missile defense complexes - the type urgently requested by Ukraine, along with Howitzer artillery shells, short-range missiles and medium-range air defense missiles.
President Trump said he had felt that the Russia-Ukraine peace deal was within reach about 4 times, but things continued to drag on.
This announcement is considered an important turning point, when the US President set a specific time frame and bound by strong measures.
