Yuliia Svyrydenko, Ukraine's Minister of Economy answers on journalists questions during an interview on Jan. 16.Evgeniy Maloletka/The Associated Press
U.S. President Donald Trump’s decision to exempt Russia from reciprocal tariffs while including Ukraine has raised questions about whether the move is part of a negotiating tactic for a peace deal.
Russia is among a handful of countries that will not be facing at least a 10-per-cent reciprocal tariff on exports of goods to the United States. Ukraine has been hit with the levy, as well as a 25-per-cent tariff on steel exports to the U.S.
White House press secretary Karoline Leavitt said Russia, Cuba, Belarus and North Korea were not included because “they are already facing extremely high tariffs, and our previously imposed sanctions preclude any meaningful trade with these countries.”
Russian commentators shared that view. “No tariffs have been imposed on Russia but that’s not because of some special treatment. It’s simply because Western sanctions are already in place against our country,” said state-run Rossiya 24 TV.
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While Ukraine’s exports to the U.S. amounted to less than US$900-million last year, the U.S. imported US$3-billion worth of goods from Russia. Fertilizer and platinum made up most of the imports, according to White House figures. U.S. exports to Russia totalled US$526.1-million.
Mr. Trump, who has been trying to broker a ceasefire in the war in Ukraine, recently expressed irritation with Russian President Vladimir Putin, who has put up multiple roadblocks to an agreement. Ukrainian President Volodymyr Zelensky has agreed to a pause in the fighting while both sides began negotiations on a lasting peace accord.
Mr. Trump is also seeking a wide-ranging mineral and energy deal with Mr. Zelensky, and a delegation from Ukraine is expected in Washington within days to discuss an agreement.
“We believe this deal is so important for the American people, for the Ukrainian people, and for the peace process,” U.S. Treasury Secretary Scott Bessent told Bloomberg television on Wednesday.
Volodymyr Landa, a senior economist at the Kyiv-based Centre for Economic Strategy, said Russia’s exclusion from the reciprocal tariffs could be a tactic. “Trump is negotiating with these countries and maybe this is part of a future deal,” he said in an interview from Kyiv.
Unsurprisingly, given the continuing war with Russia, Ukraine’s trade with the U.S. is heavily imbalanced. Ukraine’s exports to the U.S. totalled US$874-million last year while imports came in at US$3.4-billion, according to Economy Minister Yuliia Svyrydenko.
The exports largely consisted of shipments of cast iron, pipes and a multitude of other products that now face the 10-per-cent tariff. “We export over 600 different categories of goods, very different – even nut wrenches – to the United States,” Ms. Svyrydenko said. “Our tariffs on American goods are quite low – the rate on cars is 10 per cent; on coal and oil, zero per cent.”
Like most other countries, Ukraine hopes to negotiate a trade deal to lower the tariffs. “If everything stays as it is, the American universal duty will hit mainly small manufacturers. That is why we are already working on better conditions for Ukraine,” she said.
Mr. Landa said 58 per cent of Ukraine’s exports to the U.S. last year were steel products, which are now subject to a 25-per-cent worldwide steel import tariff imposed by Mr. Trump. “So that’s a bigger problem,” he said. “But on the other hand, Ukraine’s 10-per-cent tariff is smaller than other countries.”
He acknowledged that he was guessing and he was hard-pressed to understand the reasoning behind the tariffs. “For example, I don’t understand what’s unique in Somalia and Burkina Faso to not be mentioned in the document unlike all other African countries,” he said. He also noted that while Greenland is part of Denmark, the island is not a member of the European Union, which Mr. Trump hit with a 20-per-cent reciprocal tariff. “So tariffs do not apply to Greenland,” Mr. Landa said.
As for Russia’s exemption, Mr. Landa said Ukraine has faced worse slights from Mr. Trump, such as his recent decision to briefly suspend military aid and intelligence sharing, and his arm-twisting to get Ukraine to sign a mineral agreement. “It’s a good day when the U.S. administration doesn’t give another hard problem for Ukraine,” he said. “This 10-per-cent tariff is a moderate problem.”
Canada also escaped reciprocal levies, along with Mexico, Palau, Seychelles, Burkina Faso, Somalia and Vatican City.