US President warns Vladimir Putin of “extreme tariffs” if no progress is made by early August; global markets watch closely as pressure escalates
By Economy India Bureau | 29 July 2025 | Edinburgh/Washington D.C.
⏳ Trump Cuts 50-Day Deadline to 10–12 Days
US President Donald Trump has sharply reduced the timeline given to Russian President Vladimir Putin to end the Ukraine war. Speaking at an event in Edinburgh on Monday, Trump announced that Russia now has only 10–12 days to show tangible progress in peace efforts.
ADVERTISEMENT
This is a major reduction from the 50-day deadline Trump had originally set on 14 July, when he said that Russia must reach a peace settlement with Ukraine by the beginning of September or face “extreme tariffs.”
“We cannot allow this war to continue endlessly. President Putin must act immediately to stop the aggression. The world is watching,” Trump said.
Trump Shortens Deadline for Russia to End Ukraine War to Just 10–12 Days
📆 Early August Now Becomes the Flashpoint
Under the new timeline, Russia must take concrete steps to halt the war or engage in serious peace negotiations by 7–9 August 2025. Trump stressed that the window for diplomacy is closing rapidly and warned that failing to meet the revised deadline will have serious economic consequences.
“The sanctions we are prepared to implement will hurt Russia’s economy severely. This is the time to choose peace,” Trump reiterated.
🏛️ What Prompted the Change?
Analysts believe Trump’s decision to shorten the deadline is aimed at:
Intensifying diplomatic pressure on Russia
Forcing quick progress in ongoing talks
Responding to growing frustration among allies about the prolonged conflict
According to officials, US intelligence assessments suggest that the conflict could escalate further if left unchecked through the summer.
🌍 Tariffs as a Weapon
Trump has made it clear that the US will impose unprecedented economic penalties if Russia fails to comply. These could include:
Extreme tariffs on Russian exports, especially oil, gas, and metals
Further restrictions on international financial transactions
Additional sanctions on Russian state-owned entities and elites
“The measures will go far beyond anything we’ve done before,” Trump warned.
🕊️ Impact on Ukraine Peace Efforts
Ukrainian officials have cautiously welcomed Trump’s decision, saying that additional pressure on Moscow could create momentum for peace. However, they also stressed that any deal must respect Ukraine’s territorial sovereignty.
Mykhailo Podolyak, a top Ukrainian adviser, said:
“Pressure on Russia is welcome, but the goal must be a just peace, not one that rewards aggression.”
🇪🇺 Europe Reacts
European Union and NATO leaders have broadly supported the US position but expressed concerns that a shortened deadline could destabilize ongoing diplomatic efforts.
Some European diplomats fear Moscow could react defiantly.
Others see the move as a way to accelerate stalled negotiations.
🛢️ Market Uncertainty
Global markets, particularly energy markets, are watching developments closely:
Oil and gas prices could spike if new sanctions disrupt Russian exports.
Investors fear heightened geopolitical volatility ahead of Trump’s early-August deadline.
Commodity markets for metals like aluminum and nickel, where Russia is a major supplier, are already showing price fluctuations.
🔎 Kremlin’s Response
So far, the Kremlin has not issued an official statement on Trump’s revised ultimatum. Russian state media, however, dismissed Trump’s comments as “political posturing” aimed at domestic voters ahead of the upcoming US elections.
Sergei Lavrov, Russia’s foreign minister, said in a brief comment:
“Russia will not accept ultimatums. We will act in the best interests of our national security.”
On 14 July, Trump had originally given Russia a deadline of 50 days — until early September — to end hostilities or face extreme tariffs. Monday’s announcement slashed that timeline by almost 40 days, underscoring the urgency the US now attaches to a resolution.
🧭 What’s Next?
The next two weeks could be pivotal:
Diplomatic channels between Washington, Moscow, Kyiv, and European capitals are expected to intensify.
NATO leaders may hold an emergency session to discuss security guarantees for Ukraine.
Trump may also personally reach out to Putin, though White House officials have declined to confirm any direct call.
🔮 Possible Scenarios
Russia shows progress: Negotiations with Ukraine advance, and Trump extends support for a formal peace framework.
No movement by 7–9 August: US imposes tariffs and sanctions, escalating economic isolation of Russia.
Military escalation: Kremlin could respond militarily to pressure, worsening the conflict.
🧾 Expert Analysis
Dr. Emily Harper, senior fellow at the Atlantic Council, told Economy India:
“Trump is trying to shock the system. Whether Putin bends under this pressure or pushes back harder remains the big question.”
Rajan Menon, international affairs commentator, added:
“The shortened timeline increases pressure but also raises the risk of miscalculation by either side.”
Trump’s decision to reduce the peace deadline from 50 days to just 10–12 days marks a dramatic turn in US foreign policy. With early August now set as the critical deadline, the world will be watching Moscow’s next move.
The outcome could determine not only the future of the Ukraine war but also global energy prices, financial markets, and the stability of the international order.
Economy India is one of the largest media on the Indian economy. It provides updates on economy, business and corporates and allied affairs of the Indian economy. It features news, views, interviews, articles on various subject matters related to the economy and business world.
