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The U.S. Treasury Secretary, Scott Bessent, said this Sunday that his country should collaborate with the European Union to address the collapse of the Russian economy.
The official assured NBC that the U.S. is open to collaborating with European countries to impose more sanctions on those purchasing Russian oil.
"We are prepared to increase pressure on Russia, but we need our European partners to follow us," he stated
“We are in a race between how long the Ukrainian army can hold out and how long the Russian economy can endure (...) And if the United States and the European Union intervene, imposing more sanctions and secondary tariffs on countries that buy Russian oil, the Russian economy will completely collapse, forcing President Vladimir Putin to sit at the negotiating table,” Bessent explained
The Treasury Secretary also addressed the appeal to the Supreme Court that seeks to restore the tariffs after a federal judge ruled against them.
Bessent said that they are confident in a favorable ruling, but if not, they could explore other avenues that "would weaken President Trump's negotiating position."
"We would have to return approximately half of the tariffs, which would be terrible for the Treasury (...) If the court decides so, we would have to do it," he assured.
"If things are so bad, why was GDP at 3.3%? Why is the stock market at a new high? Because, you know, with President Trump, we cared about both big and small businesses," he added regarding the criticisms of the economy.
"When I was here in April, the sky was falling with tariffs, with the notion that everyone was leaving the United States. Since then, the U.S. bond market has been the best performing in the developed world, and from Barclays Bank to Goldman Sachs and others, they claim that it is the revenue from tariffs and the fiscal improvement that we are witnessing," he added.
At the end of August, in a judicial ruling that left the economic policy of President Donald Trump in limbo, a Washington appeals court declared most tariffs imposed by the president through executive orders illegal, a key pillar of his economic strategy.
The court concluded that Trump did not have the authority to impose such tariffs, as the International Emergency Economic Powers Act (IEEPA), which grants him the power to act in response to threats to national security, does not explicitly authorize the imposition of taxes or tariffs.
Frequently Asked Questions about Sanctions on Russia and the U.S. Position.
Why do the U.S. and the EU want to collapse the Russian economy?
The United States and the European Union are seeking to collapse the Russian economy as a strategy to pressure Vladimir Putin into negotiating an end to the war in Ukraine. U.S. Treasury Secretary Scott Bessent has emphasized the need to impose more sanctions and tariffs on those who purchase Russian oil in order to achieve this goal. The intention is to weaken Russia's economic capacity and force a change in its stance regarding the Ukrainian conflict.
What measures are the U.S. and its allies considering to pressure Russia?
The U.S. and its allies are considering imposing more sanctions and secondary tariffs on countries that purchase Russian oil. These measures aim to economically isolate Russia and reduce its energy export revenues, one of the main drivers of its economy. The goal is to weaken Russia's position to compel it to negotiate peace in Ukraine.
How does the economic situation in the U.S. affect the strategy of sanctions against Russia?
Despite economic tensions, the U.S. economy continues to show signs of strength, with a GDP growth of 3.3% and a stock market at historic highs. The Treasury Secretary has indicated that current economic policies, including tariffs, have improved the country's fiscal situation. However, the strategy of sanctions against Russia also presents challenges, such as the need to maintain support from European allies and manage the domestic economic repercussions.
What is the impact of the sanctions on the Russian economy?
The sanctions and tariffs imposed by the U.S. and the EU aim to significantly weaken the Russian economy. By restricting the exports of oil and other raw materials, Russia is facing a reduction in its revenues, which could lead to a deeper economic crisis. The economic pressure is intended to force Russia to change its policy regarding Ukraine and engage in peace negotiations.
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