With the American leader threatening tariffs, Communist China and America are starting trade talks.

After President Trump sanctioned Russia’s two largest oil-exporting companies, President Vladimir Putin yesterday projected self-confidence, assuring Kremlin reporters that there would be “certain consequences, but they will not significantly affect our economic well-being.” In response, Mr. Trump told White House reporters: “That’s good. I’ll let you know about it in six months from now.”

Mr. Trump’s self-confidence stems from initial reports that his sanctions are working: India and Communist China are moving to cut purchases from Russia. The two countries buy three-quarters of all of Russia’s exported oil. By the end of the one-month transition period, analysts predict, India will cut its imports to zero. China may cut imports by half.

The sanctions, the first against Russia by the nine-month-old Trump Administration, are clearly prompted by Mr. Trump’s frustration with Mr. Putin. The two leaders were to meet next month at Budapest to push forward a peace deal for Ukraine. In an advance meeting, though, the Russians made clear they were not interested in a ceasefire. Yesterday, Mr. Trump said he “cancelled” the summit. Mr. Putin said it was “postponed.”

Why sanctions now? Mr. Trump said: “I just thought the timing was good.” The Biden Administration sanctioned Russia’s third- and fourth-largest oil exporters, but left untouched the top two. They feared triggering inflation in an election year. Today, inflation is low and the midterms are a year away.

Plus, there is an oil gut. Saudi Arabia and the United Arab Emirates have 3.2 million barrels a day in idle capacity — enough to cover many missing Russian barrels. In response to the American sanctions surprise, the price of Brent oil jumped five percent yesterday, but from a low base — $62 a barrel.

In this environment of low oil prices, Russia’s oil export revenues are already down 21 percent so far this year, compared to the first nine months of last year. Taxes on oil and gas production account for about 25 percent of government revenue, making them the top contributor to Russia’s war against Ukraine.

To make ends meet, the Kremlin increasingly draws from its sovereign wealth fund. Since embarking on the major assault on Ukraine, Russia has burned through about 60 percent of liquid assets in this rainy day fund. Today, Russia has $50 billion available in the fund. This may sound like a lot. Yet Norway, an oil-exporting neighbor with 4 percent of Russia’s population, has a sovereign wealth fund that is 40 times larger — $2 trillion.

With annual inflation of 8 percent, a prime lending rate of 17 percent, and a severe labor shortage due to emigration and military callups, Russia’s economy is moving sideways this year. It is growing by 0.6 percent, according to the International Monetary Fund. Last year, enormous defense spending pushed the growth rate to 4 percent.

Awareness of Russia’s financial squeeze has penetrated the White House. The press secretary, Karoline Leavitt,  said yesterday that the sanctions are “pretty hefty.” For the first time this year, America and Europe seem to be on the same page. Last week, Britain sanctioned the two big Russian oil companies, Lukoil and Rosneft.