Archive · 8 Aug 2025

US Uses Secondary Tariffs to Exert Pressure

US Uses Secondary Tariffs to Exert Pressure

Imagine the US wants another country to stop doing business with someone the US doesn't like.

Instead of punishing the first country directly, the US uses 'secondary tariffs'.

These are like trade penalties designed to make the second country change its behavior.

This is similar to secondary sanctions, which are a tool to increase the pressure on specific people or countries that the US has already placed sanctions on.

These sanctions work because many businesses depend on the US financial system and the US dollar, so they must choose: either work with the sanctioned entity or do business with the US, but not both.

Sources