US tariffs on Russia’s trade partners won’t hurt already weak economy

This means that Russia’s trading partners will be taxed if they export their products to the US.

For example, if China keeps exporting consumer goods to Russia, US companies that import Chinese goods would have to pay a 100% tariff.

In its report this week, Linerlytica said the US tariffs would be futile. The consultancy noted: “The Russian market was already weakening since the first quarter of this year that have resulted in the withdrawal of several Russian operators.”

Linerlytica’s data shows that the Russia Far East trade is now served by 72 ships, with total capacity of 80,145 TEU, down 8% from June, and 15% lower than a year ago.

Russia’s economy is reportedly teetering on the brink, after Western sanctions and the diversion of state resources to producing arms for its attack on Ukraine, at the expense of private enterprises.

As Western businesses abandoned Russia in the wake of sanctions or to avoid reputational damage, the Russian state is said to have seized their assets in the country.

A few opportunistic operators that targeted Russia-China routes have scaled down their exposure or exited.

Dubai-incorporated Reel Shipping, which started a Russia-China service in January 2023, is reported to be one of the leavers, with its Chinese agent, Hong Kong-incorporated Vuxx Shipping, taking over its services.

Russian operator E-Line, is understood to have started bankruptcy proceedings in June in its country, after nearly two and a half years of operation. E-Line ran two services between South Korea and Russia, and between China and Russia.