Secondary sanctions

In one line: Secondary sanctions penalise third countries or firms for doing business with a country that is under primary sanctions.

Primary versus secondary

Primary sanctions bar a country's own citizens and companies from dealing with a target. Secondary sanctions go further: they threaten outsiders, for example by cutting them off from the sanctioning country's market or banking system, if they keep dealing with the target. They work because of the size of the U.S. economy and the role of the dollar.

Tariffs as a new tool

The 2026 U.S. law uses tariffs rather than only financial penalties: the President may impose up to 100% tariffs on goods from the top five buyers of Russian crude oil or gas. This is sometimes called a 'secondary tariff'.

Why it is in the news

India, one of the largest buyers of Russian crude, could face such tariffs unless it cuts new purchases or wins a waiver.

Where to go next

• CAATSA, 2017
• Strategic autonomy