Rubio: Trump's pause on Russia sanctions is meant to assess global economic impact

US Secretary of State Marco Rubio said on Saturday, 18 October, that the executive order signed by President Donald Trump on Friday, suspending sweeping sanctions and tariffs on Russia for 60 days, is meant to give time to assess their impact on the global and US economies. The measures were adopted by Congress in a law passed last month and were due to take effect two days after the order was signed.

Rubio's explanation

Rubio said the president wants to use the period to work out what imposing both sanctions and tariffs would mean for the global economy and even the US economy. He noted that the restrictions involve several countries, not only Russia. According to him, various conflicts are affecting energy prices, including the US war on Iran and attacks on Saudi Arabia by Yemen's Houthis. These conflicts are "starting to crash into each other", he said, affecting not just oil and diesel prices but economies more broadly.

Trump said late on Saturday that the decision would benefit the US, though it was unclear whether he had actually made up his mind. "We'll figure it out," he said.

The law and the criticism

The law, passed in September and signed by Trump, provided for sanctions on Russian officials, oligarchs and financial institutions, and gave the president authority to sanction major buyers of Russian oil and gas. The aim was to cut off funding for supporters of Russian President Vladimir Putin and his war on Ukraine.

Republican Senator Thom Tillis, who leaves office in January, called the order "beyond irresponsible", while Texas Republican Senator Ted Cruz called it a mistake. The order followed a deal between Trump and Putin to allow Russian diesel exports in exchange for eased sanctions.

The impact of higher diesel prices caused by the Iran war is beginning to reach the US economy, and cost of living is a key concern for voters ahead of next month's midterm elections. Rubio stressed that Russian diesel would reach the global market anyway, and the only difference is how much of it the United States would receive. Ukrainian President Volodymyr Zelensky said he feared Washington could lift further sanctions and that Trump's action "rewards" Putin.