MOSCOW, August 8. /TASS/. The introduction of tariffs against Russia by US President Donald Trump will trigger an increase in prices for palladium, uranium, and fertilizers in the US, Chief Economist at the Stolypin Institute for Economic Growth Boris Kopeikin told TASS.
On Thursday, US tariffs ranging from 15% to 41% came into effect on more than 60 countries and the European Union. The highest tariffs were set for Syria (41%), Laos (40%), Myanmar (40%), Switzerland (39%), Iraq (35%), and Serbia (35%).
"An increase in tariffs on Russian supplies to the US is still quite likely, though it is of little importance due to small volumes of supplies. The main consequence is an increase in prices for palladium, uranium, and fertilizers in the US itself," the expert said.
Speaking about the impact of tariffs against other countries on Russia, he said that the Russian economy may feel the consequences through "downward pressure" on prices for oil and other goods in the near and longer term. "Tariffs could also reduce demand for commodities, which make up a significant share of Russian exports. That said, Trump's actions regarding Russia are difficult to predict considering the rapidly developing situation with negotiations on Ukraine," Kopeikin said.
In turn, the situation with India is becoming a test for the US for readiness and, most importantly, the ability to apply large-scale measures to third countries, he added. "The 25% tariffs that have been unveiled but are only to be implemented in a few weeks, are clearly far from the previously announced 100%, much less 500%, and appear to be part of a bargaining chip with the country (India - TASS) as part of ongoing negotiations on future terms of mutual trade," the expert explained.
A large-scale increase in tariffs on US supplies from China, India and Turkey, which buy Russian oil, is possible, though it would mean the destruction of Washington's recently reached trade agreements with Beijing. "If a massive reduction in oil supplies from Russia does occur, it will be followed by a surge in prices, partially offsetting Russian exporters’ losses, which could lead to a response from India and Turkey that will begin to lose huge sums as major importers," Kopeikin said, adding that the situation in the global economy will become less predictable and potentially crisis-ridden.