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US Senate puts Russian sanctions on hold during Trump's ultimatum

eurointegration.com.ua

US Senate puts Russian sanctions on hold during Trump's ultimatum

US Senate Majority Leader John Thune has said he will not promote a package of sanctions against Russia's trading partners after US President Donald Trump had issued an ultimatum to Russia to encourage Kremlin leader Vladimir Putin to move towards a peace deal with Ukraine.

"It sounds like right now the president is going to attempt to do some of this on his own. If at some point the president concludes that it makes sense and adds value and leverage that he needs in those negotiations to move the bill, then we’ll do it. We’ll be ready to go," Thune said, as quoted by Politico.

Trump threatened on Monday to impose secondary tariffs of up to 100 per cent on countries that still trade with Russia. The Senate bill authorises even tougher tariffs on a list of countries that includes China, India and Brazil.

"We’re going to be doing secondary tariffs if we don’t have a [Russia-Ukraine peace] deal within 50 days," Trump said during his meeting with NATO Secretary General Mark Rutte on 14 July.

The bill, drafted by Senators Lindsey Graham and Richard Blumenthal and with 85 co-sponsors in the Senate, authorises Trump to impose secondary tariffs of at least 500 per cent on imports from countries such as China, Brazil and India that still trade with Russia.

This would also allow Trump to raise tariffs on the remaining US imports from Russia to at least 500 per cent, a measure that would likely have less force than secondary tariffs due to previous sanctions that have already significantly reduced trade with Moscow.

Thune suggested that Trump's threat means the Senate will no longer need to pass the Graham-Blumenthal bill.

"We are going to try as best we can ... coordinate strategies with the White House, obviously with the House," Thune said.

Action in the House of Representatives also appeared unlikely following Trump's statements. Asked whether sanctions legislation would emerge before the House adjourns for summer recess at the end of this month, Majority Leader Steve Scalise said: "Not right now".

He suggested that Trump's unilateral actions could make it impossible to adopt a separate bill on sanctions: "If anybody’s going to be able to get Putin to the table to finally agree to peace, it’s President Trump".

For his part, Trump said on Monday that he did not consider a 500 per cent tariff rate necessary "because at a certain point it doesn’t matter [how much higher the tariff is]. 100 per cent is going to serve the same function".

Graham and Blumenthal welcomed both Trump's tariff threat and his plan to sell US-made weapons to NATO for use by Ukraine in a joint statement.

"However, the ultimate hammer to bring about the end of this war will be tariffs against countries, like China, India and Brazil, that prop up Putin’s war machine by purchasing cheap Russian oil and gas," the senators said.

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