Trump’s latest initiative introduces what he terms a ‘secondary tariff’, aimed at pressuring countries to sever ties with US opponents - in this case Russia.

The fundamental principle of "secondary tariffs" involves using trade penalties against one country to exert pressure or influence upon another country. This approach shares similarities with secondary sanctions mechanisms. How are secondary tariffs different from secondary sanctions?

Secondary sanctions basically serve as a US policy tool to enhance the impact of primary sanctions imposed on specific entities or nations.

These sanctions specifically address business activities with sanctioned parties that occur beyond US jurisdictional boundaries. The objective is to present organisations, financial institutions and persons with a decisive choice: either maintain business relations with the sanctioned entity or continue operations with the US, as both options cannot coexist.

Secondary sanctions derive their effectiveness from the dominant position of the US financial system in global economics and the dollar's status as the international reserve currency, rather than through direct asset seizures or fines like primary sanctions.