President Trump is weighing major economic sanctions on Russia, warning that if President Vladimir Putin does not agree to a ceasefire in Ukraine, the U.S. will launch what he called an “economic war.” The announcement came during an August 26 meeting, where Trump made clear he would not support escalating military engagement but would instead cripple the Russian economy through strategic financial pressure.
Trump emphasized that he still hopes for a peaceful resolution between Ukraine and Russia, urging direct talks between Presidents Zelensky and Putin. The Trump administration has avoided immediate sanctions to allow for diplomatic progress, though Trump noted that Zelensky has expressed openness to negotiations. If Putin refuses to respond, the sanctions will move forward.
The proposed economic measures would mark a sharp escalation. Trump stated clearly, “This will not be a world war, but it will be an economic war,” signaling his administration’s readiness to use financial tools to deter aggression. Sources inside the administration said the sanctions would target critical sectors of Russia’s economy, including energy, finance, and defense.
The administration is also preparing to increase tariffs on India due to its continued purchase of Russian oil. The proposed 25 percent tariff hike would affect Indian imports entering the U.S., sending a message that economic partnerships with adversarial regimes come with consequences.
Meanwhile, U.S. and Russian officials have held quiet discussions about energy ventures, including potential partnerships involving Exxon’s re-entry into the Sakhalin-1 oil project and Arctic LNG expansion. These talks are taking place under the shadow of looming sanctions, indicating a complex and high-stakes balancing act by the Trump administration.
