**US Excludes Russia from Tariffs to Avoid Disrupting Peace Talks**
In a recent interview, White House National Economic Council Director Kevin Hassett explained that Russia was left off the US tariff list because of ongoing peace negotiations with Ukraine. According to Hassett, President Donald Trump made the decision not to mix the two issues together and instead focus on diplomatic progress.
**Risking Disruption in Diplomatic Progress**
Hassett argued that introducing new tariffs during peace talks would be counterproductive, potentially disrupting diplomatic efforts. He emphasized that this would not be a good time to throw new things into these negotiations, especially given their importance for Ukrainian and Russian lives.
**Tariff Policy: A Mixed Bag for Ukraine**
The US tariff policy announced as part of what Trump called “Liberation Day” imposed duties on nearly every major trading partner, including Ukraine. Kyiv faced a 10% tariff compared to 20% on the EU and 54% on China. Economy Minister Yuliia Svyrydenko noted that while these tariffs will be difficult for Ukraine’s economy, they are not critical.
**Growing Diplomatic Engagement**
The White House’s decision to exclude Russia from the tariff list comes as Washington and Moscow show signs of diplomatic engagement. Kremlin negotiator Kirill Dmitriev visited the US last week, expressing cautious optimism about Russian-American relations. He emphasized a focus on investment cooperation and the beginning of “respectful dialogue.”
**What Does This Mean for Ukraine’s Economy?**
Ukraine’s exports to the US in 2024 totaled $874 million, with cast iron and pipes being significant contributors. The country imported $3.4 billion worth of US goods the same year. While Ukraine will face challenges due to these tariffs, they are unlikely to be critical.
**Analysis: Tariffs as a Tool for Diplomacy**
The decision to exclude Russia from US tariffs may be seen as a strategic move by the Trump administration to prioritize diplomatic progress over economic leverage. By not imposing new tariffs on Russia, Washington is signaling its commitment to ongoing ceasefire negotiations with Ukraine and avoiding any actions that might disrupt these talks.
This approach demonstrates a nuanced understanding of the complex relationships between economics, politics, and diplomacy. As such, it highlights the challenges faced by policymakers when balancing competing interests in the pursuit of peace and economic cooperation.
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