Russia’s involvement in Ukraine peace talks was the main reason why Moscow has not faced the painful trade tariffs President Donald Trump has imposed on most of the rest of the world.
That explanation by White House National Economic Council Director Kevin Hassett appears to stand in contrast with the Trump administration’s previous reason, voiced last week: namely that trade between the two countries is too negligible, due to sanctions over Vladimir Putin‘s full-scale invasion.
The lack of impact on Moscow has been met with criticism in Ukraine. The Hope for Ukraine charity CEO Yuriy Boyechko has noted that the war-torn country, also party to the peace negotiations, has been hit with 10 percent tariffs while Russia was exempt.
Newsweek has contacted the White House for further comment outside of office hours.
Why It Matters
Trump’s phone call with Putin last month was seen as the latest chapter in bringing Russia in from the economic isolation it faced due to the war it started.
U.S. sanctions on Russia have caused trade between the countries to dwindle to $3.5 billion in 2024 from $35 billion in 2021.
Moscow’s omission from Trump’s tariffs raised questions over whether it was getting special treatment from the U.S at the expense of the country it had invaded, especially as countries with even less trade than Russia, such as Mauritius or Brunei, were on the list.
The White House’s latest explanation that Russia did not face tariffs because Washington did not want to imperil peace negotiations signals another shift in the narrative as Moscow seeks to increase economic cooperation with the U.S. on rare earths and Arctic resources.
What To Know
ABC News’ George Stephanopoulos asked Hassett on Sunday why Russia had been omitted from the Trump administration’s list of 180 countries facing tariffs.
Hassett replied that negotiations were ongoing between Russia, US and Ukraine and that Trump had decided “not to conflate the two issues.”
He said that did not mean Russia would not face measures in future, but that it would only complicate negotiations for a peace deal by adding new terms.
White House press secretary Karoline Leavitt had previously said Russia was left off because sanctions “preclude any meaningful trade” with the U.S.
However, the omission sparked a strong reaction from political figures that Moscow was getting special treatment.
Yuriy Boyechko, from Hope for Ukraine, a group which provides supplies to Ukrainians impacted by the war, said that Trump’s decision was adding to the economic pain for the country.
“Ukrainians are looking for answers as to why the U.S. is imposing 10 percent tariffs on the Ukrainian economy, which is barely holding on, while helping the Russian economy by not including them on the list of countries affected by tariffs,” he told Newsweek.
He said continued Russian missile attacks pushed more Ukrainians into desperation, resulting in food and bread lines getting ever longer. Trump’s tariff on Ukraine “will cause even more economic losses, pushing more families into poverty,” he added.
What People Are Saying
White House National Economic Council Director Kevin Hassett: “There’s obviously an ongoing negotiation with Russia and Ukraine, and I think the president made the decision not to conflate the two issues.”
Yuriy Boyechko, Hope for Ukraine: “President Trump’s tariff announcement excluded one big country, Russia. At the same time, a 10 percent tariff was slapped on war-torn Ukraine…Ukrainians are looking for answers.”
What Happens Next
While Russia was left off the list, the White House has warned that it may face tariffs if Putin refused any peace deal.
Last week a bipartisan bill was presented to the U.S. Senate proposed 500 percent tariffs on key Russian exports including oil, signaling that Russia could face tough U.S. measures if it doesn’t agree to deal in the the war Trump has pledged he would end.
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