US Treasury Minister Scott Bessent announced on Monday the introduction of revolutionary tariffs on countries purchasing Russian oil subject to sanctions. The tariffs can scope up to 100 percent, which is simply a breakthrough in American sanctions policy. Bessent besides called on the European Union to follow in the footsteps of the United States. The Minister warned that a possible trade war with the EU would be more severe for European countries.
Bessent referred in a Monday interview with CNBC to president Donald Trump's dissatisfaction with Russia's attitude and the threat of him imposing secondary duties on countries buying Russian oil. As he stated, although his ministry has a function in the introduction of financial sanctions, "breakthrough" would be restrictions in the form of duties.
«President Trump has changed the paradigm here on his own, due to the fact that the Act contains a provision which - although we do not know what the deadline will be, whether it will be 10, 30 or 50 days - assumes that any country which buys Russian oil subject to sanctions will be subject to additional customs tariffs of up to 100 percent" - said Bessent.
Senate supports revolutionary approach
The Minister stressed that the United States legislature agrees with president Trump that duties service political purposes, which he felt was revolutionary. In doing so, he called on the EU to follow the example of the US if this was to be done.
«President Trump has changed the situation here and I appeal to our European allies who have an crucial game ahead of them to follow in our footsteps if we introduce these additional tariffs" - said the minister. The politician besides reported that in trade talks with China intends to "in the very close future" start talks about Beijing buying oil from Russia and Iran.
New demands on the EU
Bessent besides referred to trade negotiations with the EU and the Sunday reports of the "Wall Street Journal" that president Trump had announced additional demands in these talks. These requirements were expected to surprise EU officials who thought they were close to an agreement, leaving a work of 10 percent.
According to the "WSJ", after the last return to the group of countries pushing for a tough attitude in talks Germany arrived. The Minister assessed that if there was a trade war with the EU, it would be more severe for European countries.
Trade deficit as argument
«We have a immense trade deficit with the EU, so erstwhile it comes to this level of duties, it will have a greater impact on them. So I imagine that they will want to negociate faster" - said Bessent. The Minister added that it is 27 different countries, and that is what the EU architecture is about.
«So we have this transnational organization that negotiates. However, I think that any EU governments are frustrated by the pace of negotiations" - he said. According to the fresh US proposal, cited by the "WSJ", customs duties on EU goods would be 15 percent.
If the agreement is not reached, the duties will scope 30 percent on the first August.
From Washington Oskar Górzyński (PAP) Note: This article was edited with Artificial Intelligence.