The United States is demonstrating the paradox of its immense economic power, using it to simultaneously punish one nation and potentially reward another for the very same activity: trading with Russia. This complex application of power is reshaping global trade dynamics.
The punishment is being directed at India. Through the imposition of 50% tariffs, the US is leveraging its position as the world’s largest consumer market to inflict economic pain on India for its decision to import Russian oil.
The potential reward is being offered to Russia itself. By considering deals like Exxon Mobil’s return to the Sakhalin-1 project, the US is dangling the prospect of valuable investment and technology as an incentive for diplomatic cooperation on the Ukraine conflict.
This paradoxical use of power—as both a sword against an ally and a key to unlock a deal with an adversary—highlights the flexible and often contradictory nature of American foreign policy. It is a clear illustration of how economic might can be wielded in nuanced and targeted ways to achieve specific strategic goals.