On Sunday, U.S. Treasury Secretary Scott Bessent emphasized the importance of collaboration with the European Union to destabilize the Russian economy. Speaking to NBC, Bessent highlighted that the United States is willing to work alongside European nations to enforce additional sanctions against buyers of Russian oil.
"We are ready to increase pressure on Russia, but we need our European partners to join us in this effort," Bessent stated. "The situation is a race between the endurance of the Ukrainian military and the resilience of the Russian economy. If the U.S. and the EU step in to impose further sanctions and secondary tariffs on countries purchasing Russian oil, it will lead to a total collapse of the Russian economy, compelling President Vladimir Putin to negotiate," Bessent elaborated.
Legal Battles Over Tariffs
Bessent also addressed the ongoing appeal to the Supreme Court aimed at reinstating tariffs after a federal judge ruled against them. He expressed confidence in a favorable outcome but acknowledged alternative measures to weaken former President Trump's negotiating position if necessary.
"We might have to return around half of the tariffs, which would be detrimental for the Treasury," he remarked. "If the court decides against us, we will comply."
Economic Performance Amid Criticism
Responding to criticisms about the economy, Bessent questioned, "If things are so dire, why did the GDP grow by 3.3%? Why is the stock market hitting new highs? Under President Trump, we focused on both large and small businesses."
Reflecting on earlier concerns, he noted, "Back in April, there was widespread panic over tariffs, and fears of businesses leaving the U.S. Since then, the U.S. bond market has outperformed other developed nations, with firms like Barclays Bank and Goldman Sachs attributing this to revenue from tariffs and fiscal improvements."
Judicial Setback for Trump's Economic Strategy
In a judicial decision that unsettled President Donald Trump's economic policy, a Washington appeals court declared most tariffs imposed through executive orders as unlawful. This ruling challenged a foundational aspect of Trump's economic strategy.
The court determined that Trump lacked the authority to impose such tariffs, as the International Emergency Economic Powers Act (IEEPA), which permits actions against national security threats, does not explicitly authorize the imposition of taxes or tariffs.
FAQs on U.S. and EU Economic Strategy
What is the main goal of the U.S. collaborating with the EU regarding Russia?
The primary objective is to destabilize the Russian economy by imposing additional sanctions and tariffs, leading to economic collapse and forcing Russia into negotiations.
What was the outcome of the recent court ruling on tariffs?
A Washington appeals court ruled that most of the tariffs imposed by President Trump through executive orders were illegal, as they were not authorized by the International Emergency Economic Powers Act (IEEPA).