Jens Asbjørn Bøgen
The problem is, that it could also hit the U.S. economy hard.
The problem is, that it could also hit the U.S. economy hard.
What is happening?
U.S. Treasury Secretary Scott Bessent issued a stark warning on July 29:
China could face sweeping trade penalties if it continues purchasing oil from Russia.
“They’d Like to Pay a 100% Tariff,” Says Bessent
Speaking in Stockholm, Bessent struck a pointed tone.
“We don’t want to impede on their sovereignty, so they’d like to pay a 100% tariff,” he said, implying that continued oil imports from Russia could soon come at a steep cost for Beijing.
Trump Sets August 7 Deadline
Just hours before Bessent’s comments, President Donald Trump confirmed that secondary tariffs on Russia will take effect in 10 days—unless the Kremlin agrees to a ceasefire.
The countdown ends on August 7.
50-Day Ultimatum Cut Short
Trump had initially given Moscow a 50-day deadline on July 14 to reach a peace deal or face “severe” economic consequences.
But on July 28, he indicated growing impatience, suggesting the U.S. won’t wait that long after all.
China Stands Firm Behind Russia Despite Pressure
Despite mounting Western sanctions, Beijing continues to deepen its trade and diplomatic ties with Moscow.
China is not only the top buyer of Russian crude oil but also a crucial provider of dual-use technology that fuels Russia’s military efforts.
What Are Secondary Sanctions—and Why They Matter
The Biden administration’s (now Trump’s) proposed secondary sanctions would punish third-party nations or companies that do business with Russia.
That means Chinese firms trading in Russian oil could lose access to U.S. markets altogether.
Potential 100% Tariff Could Hit U.S. and Chinese Economies
If China continues buying sanctioned Russian oil, its exports to the U.S. could face tariffs of up to 100%.
That would not only hurt Chinese exporters but also drive up prices for American consumers, further inflaming global economic tensions.
Trump’s Frustration Grows Over Russian Stalling
Trump, who vowed to broker a peace deal within 24 hours of taking office, now appears increasingly frustrated.
On July 28, he called out Russia’s “delays” in coming to the table, suggesting the White House may be preparing harsher moves.
Crippling Russia’s Oil Revenue Is the Goal
The U.S. strategy centers on choking off Russia’s oil income, which accounts for roughly one-third of its federal budget.
Cutting that revenue stream is seen as key to weakening Moscow’s ability to sustain its military campaign.
Moscow: New deadline “noted”
Kremlin spokesperson Dmitry Peskov acknowledged the seriousness of the tariff threat on July 15.
However, as of now, Moscow has only said that it have “noted” the U.S. deadline being cut short.
