Strike on the Kremlin: How Trump's Tariff Policy Weakens Russia.

After Donald Trump announced the introduction of global tariffs, the Russian stock market suffered losses. The Moscow Exchange index fell by 4.5%, which is approximately equal to 6 billion dollars. Investors began to worry about the potential impact of the new tariffs on the Russian economy, especially due to Trump’s threats to impose tariffs on Russian oil. According to The Bell, Russia may need financing to cover its budget deficit, which will be costly with a trade war.

This drop in income from energy resources may complicate the reduction of interest rates by the Central Bank of Russia. Additionally, the increased borrowing costs may limit the country’s economic development. Earlier, Trump expressed dissatisfaction with the position of the Russian president regarding the conflict in Ukraine and threatened to impose tariffs on countries buying oil from Russia. This raised concerns in global markets and lowered oil prices.

Although Russia was not included in the list of countries subjected to the new tariffs, the Russian economy remains vulnerable to changes in the trade policies of major nations due to sanctions and limited trade volume with the USA.

Analysis:

News of the introduction of global tariffs by the USA has caused a lot of anxiety in the Russian stock market. Investors began to doubt the future of the Russian economy due to the potential impact of tariffs on oil prices and the overall economic condition. Russia, like other countries, has become a victim of the trade war, and this drop in the stock market is evidence of its vulnerability. Further actions by the USA and the corresponding reaction of the Russian economy may significantly affect the country's state and the consequences for global markets.