The Impact of the Russia-Ukraine War on the American Economy

The Impact of the Russia-Ukraine War on the American Economy

The Impact of the Russia-Ukraine War on the American Economy. Despite being miles away from the Russia-Ukraine war, the US economy has suffered a major blow as an aftermath of the wrangle. The US faces difficulty importing raw materials or exporting products to Russia and Ukraine amidst their fight. Besides, industries in the US have suffered directly from the war due to the high cost of raw materials. The risk of unemployment has also risen due to the shortage of supplies in the industries. The US economy has become weaker due to the supply shortage and trade sanctions caused by the Russia-Ukraine war.

The Impact of the Russia-Ukraine War on the American Economy. The Russia-Ukraine war has led to a decrease in the supply of commodities from Ukraine and Russia to the US, disabling the economy to serve the high level of demand. The US depends on Ukraine and Russia for many commodities like neon gas, pig iron, platinum, palladium, and oil. According to Smialek and Swanson (2022), the rise of oil and food prices worldwide attracts an inflation surge, increasing US uncertainty (Mbah and Wasim 148). The war between Ukraine and Russia has resulted in a short supply of these commodities, leading to a shortage of raw materials in various US industries. As a result, the manufacturing, electronics, and automotive industries have suffered a blow to their sales. Failure to meet the commodity demand due to the decline in raw materials has led to possible inflation. Besides, industries suffering the direct impacts of the shortage of commodities have had to reduce their staff to stay within their operating budgets. Therefore, the Russia-Ukraine war has led to supply shortages in the US, causing hardships in various industries.

The Russia-Ukraine war has been in the US due to the resulting sanctions on importing farm inputs like fertilizer. Besides sourcing fertilizer from countries like Canada and Belarus, the US acquires 10% of its fertilizer from Russia (Ibendahl 2). However, the Russia-Ukraine war has caused problems importing fertilizer from Russia to the US. Ibendahl states that Russia and Belarus account for more than a third of world production, and disruption in US imports from Russia can have the greatest impact on potash (p.3). A rise in key farm inputs could project a significant increase in the prices of farm goods. Therefore, the Russia-Ukraine war has led to an increase in the prices of farm produce in the US market.

The US supply shortage of commodities due to the Russia-Ukraine war has contributed to the rise in prices of goods, fueling inflation and slowing down US economic growth. The Russia-Ukraine war has caused a rise in inflation in the US as a result of the increased food and raw material prices (Coulter and Martínez-García para. 2). Sanctions in Russia and difficulties in Ukraine due to the war has led to a shortage of raw materials in US industries, leading to a shortage of supply in the US industries. Consequently, the US inflation level has risen, which weighs on the country’s economic growth. The US economic growth has been in turmoil amid the Russia-Ukraine war, which has attracted an inflation increase.

In summary, the Russia-Ukraine war has weakened the US economy due to the resulting trade sanctions and supply shortages. The US economy depends on imports from Russia and Ukraine, which have become minute due to the war. US industries that depend on imports from Russia and Ukraine have suffered a shortage of raw materials. Besides, the agricultural industry has been unable to thrive more smoothly due to fertilizer sanctions against Russia. As a result, the US suffered economically, contributing to inflation. The US must find alternative sources of potash and other essential raw materials to facilitate its economy when an alike crisis emerges.


Works Cited

Coulter, Jarod. and Martínez-García, Enrique. (2022). “Russia’s War on Ukraine Will Leave Scars on U.S., World Economies.” Federal Reserve Bank of Dallas, 17 May 2022, Accessed 14 Jan. 2023.

Ibendahl, Gregg. “The Russia-Ukraine Conflict and the Effect on Fertilizer.” (2022). Available at: Accessed 14 Jan. 2023.

Mbah, Ruth Endam, and Divine Forcha Wasum. “Russian-Ukraine 2022 War: A Review of the Economic Impact of the Russian-Ukraine Crisis on the USA, UK, Canada, and Europe.” Advances in Social Sciences Research Journal, vol. 9, no. 3, 2022, pp.144-153.



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