US urges Europe to join potential secondary tariffs on Russian oil
The United States hopes European allies will join potential secondary tariffs on Russia, U.S. Treasury Secretary Scott Bessent told CNBC in an interview published on July 21.
"Russian oil is going to be subject to up to 100% secondary tariffs," Bessent said. "I urge our European allies, who have talked a big game, to follow us if we implement these secondary tariffs."
Bessent's remarks follow U.S. President Donald Trump's July 14 announcement that the U.S. will impose "severe" tariffs on Russia unless it agrees to end the war in Ukraine within 50 days.
"We call them secondary tariffs," Trump said during a joint press conference with NATO Secretary General Mark Rutte at the White House. "Tariffs that are about 100%."
Secondary tariffs are penalties targeting countries or companies that continue doing business with a sanctioned nation by charging extra for access to the U.S. market or financial system.
If a third country like China keeps buying Russian oil, exports to the U.S. could face a further 100% tariff, significantly raising prices for American consumers and squeezing Chinese exporters.
Trump, who had promised to broker a peace deal within 24 hours of taking office, has grown increasingly frustrated with what he described as Russia's delays in moving forward with peace talks.
The U.S. strategy seeks to pressure Moscow by curbing its oil income, which accounts for roughly one-third of federal revenue and remains a vital source of funding for its war effort.
Kremlin spokesperson Dmitry Peskov responded on July 15 by calling Trump's threat "serious," but said Moscow needs time to analyze Washington's message.
