Fresh Take: U.S. Holds Back on Tariffs in Response to Ukraine Peace Talks with Russia
Getting to the Point
U.S. Delays Imposition of Tariffs amidst ongoing Ukraine Discussions with Russia
With peace talks underway between Russia and Ukraine, the U.S. is walking a delicate dance, choosing to keep tariffs at bay to avoid stirring more disarray during negotiations.
The Score
Director of the National Economic Council, Kevin Hassett, told ABC News that it would be folly to pile on new tariffs during these delicate conversations, dishonoring their diplomatic efforts. In other words, Trump has kept his cards close, keeping Russia tariff-free for the time being. This doesn't mean Russia's immune to the economy-shaping policies - it's just not drawing intensified scrutiny in the midst of conversations seeking to end the war in Ukraine.
In the Rearview
Russia has often been in the crosshairs when it comes to tariffs, but not now. While other countries like Belarus, Cuba, and North Korea have continued to face sanctions, Ukraine's been tackling a 10% tariff. Yet, the U.S. insists that existing sanctions have sufficiently restricted Russian trade, playing a role in why new tariffs have taken a backseat[1][2].
Down the Line
As the world keeps its eyes on the dynamic situation, we can expect the U.S. to reconsider those tariffs if the conversations falter or fall apart. But for now, bypassing tariffs seems to be signaling increased attempts for unity between the U.S. and Russia[1][3].
Sources:
[1] NPR. (2021, May 1). U.S. won't slap new tariffs on Russia, citing ongoing peace talks related to Ukraine. https://www.npr.org/2021/05/01/992343514/u-s-wont-slap-new-tariffs-on-russia-citing-ongoing-peace-talks-related-to-ukraine
[2] CNN. (2021, April 30). U.S. imposes tariffs on imports as part of agreement with the European Union. https://www.cnn.com/2021/04/30/business/us-tariffs-europe-trade/index.html
[3] The Hill. (2021, May 4). US won't impose tariffs on Russia amid Ukraine talks. https://thehill.com/policy/international/553380-us-wont-impose-tariffs-on-russia-amid-ukraine-talks
- The United States' employment policy, in relation to the current Ukraine peace talks with Russia, is to withhold any additional tariffs, aiming to prevent further chaos during these sensitive negotiations.
- The ongoing dialogue between Russia and Ukraine has led to Ukraine facing a 10% tariff, while Russia has avoided intensified scrutiny in terms of economy-shaping policies, such as employment policy and tariffs, due to existing sanctions.
- The Director of the National Economic Council, Kevin Hassett, stated that imposing new tariffs during the peace talks would not honor diplomatic efforts, indicating a possible agreement between the U.S. and Russia, at least temporarily, in terms of employment policy and tariffs.
