The US ‘economic bomb’ of a 500% tariff on any country that still buys energy from Russia is now shaking the European Commission.
However, the bloc remains optimistic that it can avoid the impact of these huge tariffs.
The bill proposed by Senators Lindsey Graham and Richard Blumenthal is not just political rhetoric. If passed, it would not only target Russia, but also countries that buy its energy, including close US allies in the EU.
Ironically, although the EU is in the process of reducing its dependence on Russian energy, it still relies on pipeline gas, LNG and nuclear fuel from the Kremlin.
The Commission’s main spokeswoman, Paula Pinho, stated that the EU is currently in a phase of phasing out its addiction to Russian fuel, and therefore the proposed tariffs should not be a major problem in the long term.
However, in reality, more than 10 EU countries still rely on energy from Russia. If the bill passes without any exemptions, the economic impact on these countries could be huge.
As a workaround, US President Donald Trump has the power to grant one-time exemptions on national security grounds. However, the EU has not yet formally requested such an exemption.
Pinho added that it is too early to predict whether the bill will pass the Senate.
What is clear is that the main targets of these tariffs are China and India, the largest buyers of Russian energy, but their impact could destabilize global markets.
With Trump back in the White House and trans-Atlantic relations increasingly strained, the ball is now in Washington's court. The EU can only hope that it does not become the next victim of the Kremlin's pressure strategy.
