Despite US tariff threats, Russia's stock market rose. Moscow is more relieved than rattled, seeing time to counter proposals amidst Trump's Ukraine war focus.
Despite President Donald Trump's strong rhetoric, including the announcement of new US arms shipments to Ukraine and the threat of new tariffs aimed at Russia, the reaction in Moscow was not what many expected.
Instead of a market downturn, the Russian stock exchange actually rose by 2.7%. This unexpected response suggests that Russia was bracing for even tougher sanctions from the US.
Russia will likely be relieved that the secondary tariffs against its trading partners will only take effect in 50 days. This provides Moscow with ample time to develop counter proposals and potentially delay the implementation of sanctions further.
President Trump's announcement signals a firmer approach towards Russia, reflecting his growing frustration with President Vladimir Putin's hesitance to sign a peace deal regarding the conflict in Ukraine.
For months, Moscow's response to peace proposals has been a consistent "Yes, but…", demanding conditions such as the cessation of Western military aid and intelligence sharing with Kyiv, as well as the end of Ukrainian military mobilization, before any comprehensive ceasefire can be considered.
President Trump claims he is "not happy" with Vladimir Putin, indicating a growing sense of disillusionment. This sentiment appears to be mutual, as Russia, too, has been expressing increasing dissatisfaction with the US president.