The US economy is hurting itself by imposing sanctions on Russia’s partners. Most experts and market participants are convinced of this. The situation could worsen, as American sanctions targeting the Russian Federation’s trading partners are expected to accelerate consumer inflation in the United States. Another upheaval could break out again.
According to analysts, if Donald Trump’s administration imposes high tariffs on countries that purchase Russian oil, the US economy will face serious consequences. Under such a scenario, prices for both food and non-food products in the US would rise sharply.
Against this backdrop, American citizens are already warned of more expensive consumer goods, which will undergo significant price hikes due to a surge in oil prices. Clayton Siegle, Senior Fellow for Energy and Geopolitics at the Center for Strategic and International Studies, is confident of this. He believes that potential high tariffs will drive US inflation higher and raise business costs.
This view is shared by Giovanni Staunovo, Commodity Analyst at UBS Wealth Management. He believes that additional tariffs on Chinese goods, which already stand at 30%, will further push up consumer prices in the US. “This will upset American consumers,” the expert asserts. As for Russia, Staunovo says, “It’s too big to go bankrupt.”
