Russia warns of full-scale trade war over US sanctions

Dmitry Anatolyevich Medvedev

Russia’s Prime Minister spoke out against the latest US sanctions:

Russia warns of full-scale trade war over US sanctions

2 August 2017

Russian Prime Minister Dmitry Medvedev has said Donald Trump’s signing of new sanctions on Russia is tantamount to a full-scale trade war.

Earlier Mr Trump signed off on legislation imposing further sanctions on Russia after the US Congress voted last week to punish the Russian government over interference in the 2016 presidential election, annexation of Ukraine’s Crimea and other perceived violations of international norms.

Mr Trump, who has made clear he wanted to improve relations with Russia, grudgingly accepted the new congressional sanctions, which also included Iran and North Korea.

The bill had enough support in Congress to override a presidential veto.

Mr Trump called the legislation “significantly flawed” and urged Congress to not use the measure to hinder US efforts to resolve the Ukraine conflict with its European allies. https://www.rte.ie/news/world/2017/0802/894802-trump-russia/

2 August 2017

Russia blasted Wednesday the U.S. after President Donald Trump signed legislation for new sanctions against Moscow, placing the two sides on a diplomatic collision course.

President Dmitry Medvedev said the new sanctions, which were pushed on Trump by U.S. lawmakers, proved that his administration was “utterly powerless.” He further said that the sanctions were tantamount to a “full-scale trade war” between the two powers.

“The hope that our relations with the new American administration would improve is finished,” he wrote in a Facebook post.

Russia’s Foreign Ministry blasted the sanctions as “short-sighted” and said they risked harming global security. http://www.haaretz.com/us-news/1.804883

The USA has upset both Russia and Europe with this sanctions’ bill.

A German leader yesterday said he did not want a trade war, but that Europe should retaliate against the USA for this bill (see ‘Germany calls for EU countermeasures against US following Russian sanctions’).

Are trade wars coming?

Yes.

The fact of Brexit and the Russian and EU responses to the sanctions’ bill is pushing Russia closer to Europe and the Brits closer to the USA on trade.

Trade wars have been listed as part of the Twelve ‘grey swan’ events to watch for in 2017.

We also put together a YouTube video recently titled Trade Wars: Are COG warnings coming to pass?

Trade wars are costly.

It should also be mentioned that economic sanctions are costly not just to the party being sanctioned, but also to the party doing the sanctioning.

Investopedia has the following:

BREAKING DOWN ‘Trade War’

A trade war that begins in one sector can grow to affect other sectors. Likewise, a trade war that begins between two countries can affect other countries not initially involved in the trade war. A trade war can be distinguished from other actions that have a detrimental effect on the trading relationship between two countries in that its goals are related specifically to trade (whereas sanctions, for example, also negatively affect free trade, but may have humanitarian or war-related goals). Trade War http://www.investopedia.com/terms/t/trade-war.asp#ixzz4odMAFCA2

With Europe already upset, the trade sanctions have already grown beyond what the US Congress probably envisioned.

Trade wars are not good.

But a worse one is coming–one that will, at least partially, lead to an actual war.

Some items of possibly related interest may include:

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