First, the definition — “A secondary tariff is a monetary sanction imposed on countries that trade with a country with which the US is at odds, such as Venezuela. This type of tariff aims to pressure these countries to reduce their involvement in the trade of goods or services with the US target country. For example, the US has imposed a 25% tariff on countries purchasing oil and gas from Venezuela.” (Source: Microsoft Bing AI)
There’s a big difference between secondary tariffs and reciprocal tariffs. Their purpose and intention are different, and the outcomes may be different, too. Secondary tariffs are a form of economic warfare, like direct sanctions. They are not intended to raise revenue. That is possible, but amounts are likely to be small. They are intended to force behavioral changes on an adversary. Whether they succeed in obtaining a change in behavior or harden the resolve of the adversary is a geopolitical question and a current debate.
Remember, the collection of the tariff is by an American domestic enterprise, and the tariff is really a tax on a good or service coming from a third-party country that is doing business with the country that may also be a US direct tariff target.
Reciprocal tariffs are different. They are supposed to try to create a balanced trade environment by matching the tariffs imposed by other countries on US exports. If a country imposes a tariff on American goods, the US will impose an equivalent tariff on goods from that country. This is an attempt to alter a real or perceived trade imbalance. Whether a reciprocal tariff helps American businesses that may be disadvantaged by higher tariffs abroad is a debate. The stated purposes of American reciprocal tariffs are to encourage fair trade practices and protect domestic industries from unfair competition. The word fair is defined by different folks in different ways.
Secondary tariffs are imposed on countries that trade with nations that the US is confronting or disputing. For example, when the US imposes secondary tariffs on Venezuela, any country that buys oil or gas from Venezuela will face additional tariffs on their trade with the US. Note that China is a large buyer of Venezuelan oil. This strategy is used as a form of economic sanction. It is designed to discourage countries from trading with an adversary. Secondary tariffs attempt to influence the behavior of third-party countries.
The primary difference between reciprocal and secondary tariffs lies in their objectives and application. Reciprocal tariffs can lead to more predictable and stable trade relationships if there are negotiations and if they are temporary and eventually removed or diminished. Remember, when tariff wars expand, the “guns” are really pointed inward. Only a mutual agreement on trade matters that lessens the tariff impact can achieve improvement economically for the parties involved. Secondary tariffs, however, can create complex and potentially strained international relations with allies as well as adversaries.
Both types of tariffs have significant impacts on global trade dynamics even as they are implemented for different purposes.
IMO, Putin is “gaming” Trump. President Trump says he would like to be the peacemaker. IMO, Putin is a modern form of Hitler or Stalin and cares nothing about peace in any durable way. He seeks territorial expansion. He is ruthless. He jails or kills his political adversaries. He fails at keeping promises. His history is known to readers, so you can decide if it supports my opinion. He is in an alliance with others like him, including Maduro in Venezuela, Kim in North Korea, Lukashenko in Belarus, and the head of the Middle East terrorist snake, Iran’s leaders.
Of course, we always would prefer peace to war. IMO, only strength is the way to get it. I wish President Trump success and simultaneously ask him to speak publicly to the Congress to resolve the federal budget and fund the additional incremental money that is needed in the US defense budget. And please remember that Ukraine is the frontline combatant defending against Putin. It was Putin who invaded Ukraine, not the other way around. Let’s not take our eye off the real culprit in Moscow.
Some final examples about secondary tariffs in history follow. Readers can decide if they worked or not.
One notable example is the US sanctions against Iran, which included secondary tariffs on countries that engaged in trade with Iran. These tariffs aimed to isolate Iran economically by discouraging other nations from purchasing Iranian oil and engaging in business with Iranian entities. This approach was intended to pressure Iran into complying with international demands regarding its nuclear program and other geopolitical issues. Readers can decide if it worked.
Another secondary tariff was used against North Korea. The US imposed secondary tariffs on countries that conducted business with North Korea, particularly targeting those involved in the trade of goods and services that could support North Korea’s military capabilities. These tariffs were part of a broader strategy to curb North Korea’s nuclear ambitions and destabilize its economy, thereby forcing it to negotiate on international security concerns. NK now has nukes and sends troops to join Russia in the Russo-Ukraine War. How do you think we did with that retaliatory tariff approach?
During the Cold War, secondary tariffs were also used as part of the broader economic sanctions against the Soviet Union and its allies. The US and its Western allies imposed tariffs on countries that traded with the Soviet bloc, aiming to weaken the economic ties between the Soviet Union and other nations. This strategy was designed to limit the Soviet Union’s ability to expand its influence and military power by restricting its access to global markets and resources. One can argue that Gorbachev eventually negotiated a change in direction for the USSR because of this approach.
Secondary tariffs have been employed in the context of the US-China trade war. The US imposed tariffs on countries that continued to trade with China despite the ongoing trade disputes. These tariffs were intended to pressure China into making concessions on various trade issues, including intellectual property rights and market access. I’m not sure we have enough history and information to judge if these China-focused tariffs succeeded or failed.
Here’s the reading list.
“Trump putting ‘secondary tariff’ on Venezuela,”
https://thehill.com/homenews/administration/5210665-trump-secondary-tariff-venezuela/“What are ‘secondary tariffs’? Trump says they’ll soon hit Venezuela,”
https://thehill.com/homenews/5211102-what-are-secondary-tariffs-trump-says-theyll-soon-hit-venezuela/“Trump’s Novel Trade Weapon: Secondary Tariffs Explained,”
https://www.nasdaq.com/articles/trumps-novel-trade-weapon-secondary-tariffs-explained“What are secondary tariffs, and will India be affected by Venezuela’s oil sanctions by Trump?”
https://www.wionews.com/web-stories/business-economy/what-are-secondary-tariffs-and-will-india-be-affected-by-venezuelas-oil-sanctions-by-trump-8887901“Donald Trump Threatens Secondary Tariffs on Russia – What Are They?”
https://www.newsweek.com/donald-trump-threatens-secondary-tariffs-russia-what-are-they-2052892“A Brief History of Tariffs in the United States and the Dangers of their Use Today,”
https://news.law.fordham.edu/jcfl/2019/03/17/a-brief-history-of-tariffs-in-the-united-states-and-the-dangers-of-their-use-today/“10 Most Significant Tariffs in US History,”
https://home.heinonline.org/blog/2025/02/10-most-significant-tariffs-in-u-s-history/“Fact Sheet: President Donald J. Trump Imposes Tariffs on Countries Importing Venezuelan Oil,”
https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-imposes-tariffs-on-countries-importing-venezuelan-oil/
