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Oil fell after Trump made his threat, with West Texas Intermediate down 2.1% to settle below $67 a barrel
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NATHAN HOWARD
US President Donald Trump threatened to impose stiff financial penalties on Russia if it does not end hostilities with Ukraine even as he pledged fresh weapons supplies for Kyiv.
âWeâre going to be doing very severe tariffs if we donât have a deal in 50 days, tariffs at about 100%,â Trump said Monday during a meeting with NATO Secretary General Mark Rutte at the White House.
Trump said the levies would come in the form of âsecondary tariffs,â without providing details. The US president has used the term in the past to describe duties imposed on countries for trading with American adversaries.
Asked later if Trump meant to refer to the more widely known tool âsecondary sanctions,â Commerce Secretary Howard Lutnick told reporters that sanctions and tariffs were âboth tools in his toolboxâ and that âyou can do either one.â A White House official said Russia could face both measures if it fails to sign a ceasefire deal by early September.
Matt Whitaker, the US ambassador to NATO, said the planned action effectively represents secondary sanctions on countries buying oil from Russia. âItâs about tariffs on countries like India and China that are buying their oil,â he told reporters. âAnd it really is going to, I think, dramatically impact the Russian economy.â
The threats echo punishment spelled out in a bipartisan bill in Congress that would impose 500% tariffs on countries that buy Russian oil and gas. Trump also vowed earlier this year to tariff imports from countries that buy Venezuelan oil.
Trump did not elaborate on the powers he would use to impose secondary tariffs. He said he wasnât sure âwe needâ Congress to act in order to move forward but said the legislation âcould be very useful.â
The comments mark the latest signal of Trumpâs growing impatience with Moscowâs war in Ukraine, which has dragged on since 2022. But the arrangement also risks Moscow continuing its barrage on the battlefield before it returns to talks.
Trump said the US was sending a âtop-of-the-line weaponsâ package that includes Patriot air defense batteries. The president said that NATO member states will pay for the weapons to be sent to Ukraine.Â
âWeâre not buying it, but we will manufacture it,â Trump said. âTheyâre going to be paying for it.â
Much of what Kyiv will receive will depend on Europeâs ability and willingness to make the purchases. Ukraine needs air defense systems and drone interceptors as well as a constant supply of artillery shells and missiles as Moscow unleashes record air strikes.Â
Ukrainian President Volodymyr Zelenskiy said Monday in a post on X that he had spoken with Trump, who briefed him on his discussions with Rutte.
âWe discussed the necessary means and solutions with the President to provide better protection for people from Russian attacks and to strengthen our positions. We are ready to work as productively as possible to achieve peace,â Zelenskiy said. âWe agreed to catch up more often by phone and coordinate our steps in the future as well.â
Trump hailed Mondayâs announcement as a major shift in course as he looks to push Russian President Vladimir Putin to end the hostilities. But the details of the decision also reflect Trumpâs priorities: It wonât cost the US anything and Trump is not dedicating any new US funding to Ukraine, at least for now.
âIâm disappointed in President Putin because I thought we would have had a deal two months ago, but it doesnât seem to get there,â Trump said.Â
The White House didnât immediately explain how Trump envisioned the secondary tariff program working. Oil fell after Trump made his threat, with West Texas Intermediate down 2.1% to settle below $67 a barrel.
The presidentâs remarks in recent weeks make clear that his willingness to deal with Putin is being tested. Trump directed most of his ire at Zelenskiy during the first several months of his term but has grown increasingly frustrated that Putin is still refusing his ceasefire demands.
Many of the details of the new weapons cache for Ukraine also remained unclear after Trumpâs meeting with Rutte.
The NATO chief said the bloc would coordinate with allies to fulfill Ukraineâs military needs including air defense equipment, missiles and ammunition. Germany will play a major part, alongside Finland, Denmark, Sweden, Norway, The Netherlands and Canada, according to Rutte.
Hours later, German Defense Minister Boris Pistorius, also in Washington, said Germany had asked the US to make two more Patriot missile batteries available for Ukraine, and he and US Defense Secretary Pete Hegseth had promised to resolve any outstanding issues âquickly and quietly.â
He said that meant Germany expected to pay about $2 billion. Berlin also plans to buy the mid-range Typhon missile system, he said.
Rutte said that the deal with Trump will allow allies to send weapons to Ukraine more quickly, with the US later backfilling the alliesâ supplies. The agreement would be âjust the first waveâ and more is to come, he added.
âThis is again Europeans stepping up,â Rutte said, adding that Putin should âtake negotiations about Ukraine more seriously.â
–With assistance from Kate Sullivan, Meghashyam Mali, Jordan Fabian and Michael Nienaber.
(Updates with Zelenskiy comments in 11th and 12th paragraphs.)
More stories like this are available on bloomberg.com
©2025 Bloomberg L.P.
Published on July 15, 2025
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