Donald Trump’s Tariffs Hit Russia Hard

Billions of dollars were wiped off Russia’s stock market after President Donald Trump’s announcement of global tariffs—a signal that the country will be hit hard by the measures despite having been left off the list of countries targeted.

The White House said that Russia had been omitted from the tariff list because sanctions had already dwindled trade between the countries.

Newsweek has contacted Russia’s Finance Ministry for comment by email.

Why It Matters

Although Russia avoided Trump’s tariffs this week, the slump in Russian stocks adds to turbulence in the economy already caused by the sanctions imposed due to Vladimir Putin’s full-scale invasion, adding to pressure on Moscow’s ability to find its war machine.

What to Know

The capitalization of Moscow Exchange (MOEX) companies fell by $23.7 billion, from 55.04 trillion rubles ($651.8 billion) at Wednesday’s close to 53.02 trillion ($627.9 billion) by the end of Friday.

The MOEX Russia Index tracking 43 of Russia’s largest publicly traded companies, lost 8.05 percent over the week—the biggest drop since September 2022, when Putin’s announcement of mass mobilization rattled markets.

Shares in some of Russia’s largest firms dropped, including Sberbank (5.2 percent), Gazprom (4.9 percent) steel and coal giant Mechel (7 percent) and gas producer Novatek (5.4 percent).

Adding to pressure on Russia is OPEC’s decision to more than triple their planned May production. David Goldman, head of trading at Novion, told Newsweek that OPEC wishes to offset the negative impact that the tariffs will have by selling more oil, although this is “adding fuel to the fire rather than helping extinguish it.”

Independent Russian news outlet The Bell noted that if oil prices fall further due to a global economic slowdown caused by Trump’s tariffs, Russia might have to borrow to cover the fiscal deficit which won’t be cheap during a trade war.

A fall in energy revenues could make it harder for Russia’s Central Bank to cut interest rates and the subsequent higher cost of borrowing will stifle economic growth, the outlet added.

Meanwhile, the prospect of a global trade war would lower energy prices and increase import costs would hurt Russia given its reliance on commodity exports, said Yelena Kozhukhova, an analyst at Veles Capital in Moscow, per The Moscow Times.

China reacts

Disturbances were felt globally with about $2.5 trillion wiped off Wall Street and share prices in other financial centers.

On Saturday, Chinese Foreign Ministry spokesperson Guo Jiakun said “the market has spoken” in rejecting the tariffs and called on Washington for consultation.

Beijing has hit back with a 34 percent reciprocal tariff on the U.S. after Trump introduced the 34 percent tariffs on Chinese goods on top of an existing 20 percent levy.

By matching Trump’s tariffs President Xi Jinping is signaling to domestic and foreign audiences alike “China will not be cornered or cower,” Craig Singleton, China Program senior director at the Foundation for Defense of Democracies (FDD) told Newsweek.

He added that China will broaden its retaliation measures but stop short of total rupture. These moves could include more regulatory probes, especially in antitrust and cybersecurity, targeting major U.S. firms. Export controls may also tighten further on strategic minerals.

What People Are Saying

Yevgeny Kogan, the Higher School of Economics in Moscow, per The Moscow Times: “A massive crisis is unfolding before our eyes.”

Chinese Foreign Ministry spokesperson Guo Jiakun on Facebook: “The market has spoken.”

Craig Singleton, from the Foundation for Defense of Democracies (FDD): “Xi is prepared to swallow near-term economic blows to show that China won’t fold under pressure… but it’s a gamble: Trump may see this not as deterrence but as proof that tariffs bite, and press even harder.”

What Happens Next

Russia’s absence from Trump’s tariff list could be a move by the U.S. president to gain leverage over Putin regarding Ukraine peace talks.