India Could Face Up To 500% Tariffs As Trump Backs Russia Sanctions Bill, Report Claims

Washington: American pressure on India regarding energy imports from Russia may increase. The White House has backed a proposed bill that, if implemented, could impose tariffs of up to 500 percent on countries that continue trading with Russia's energy sector. Big buyers like India and China are considered to be mainly included in the scope of this proposal.

What is the 500 percent tariff proposal?

The purpose of the "Sanctioning Russia Act" introduced in the US Congress is to create economic pressure on countries involved in Russia's oil and gas business. If this bill becomes law, the US President may get the authority to impose additional duty of up to 500 percent on imports coming from such countries.

What did the White House say?

A White House official has confirmed that President Donald Trump supports this proposed bill. However, the final decision on this will be taken only after the approval of the US Congress.

Why is India at the centre of this proposal?

US lawmakers argue that a large share of Russia's energy exports go to countries like India and China. They believe that if purchases from these countries reduce, economic pressure on Russia will increase and the situation related to the Ukraine war may be affected.

On the other hand, India has consistently clarified that it imports oil keeping in mind its energy needs and economic interests. India says its energy trade is based on national needs and not on any geopolitical bias.

What could be the impact on India's economy?

Economic experts believe that if tariffs of up to 500 percent are implemented, pressure on India's exports may increase. Sectors like the pharmaceutical industry, textile and IT services are expected to be affected first. According to some estimates, its impact may also be visible on the country's economic growth.

Why has the issue become more sensitive now?

Recently, the temporary exemption from the US Treasury Department, under which India could buy Russian crude oil, has expired. After the end of this relaxation, the situation is considered more complex than before and everyone is keeping an eye on the future strategy.

Are there differences of opinion on this proposal in America also?

There is no unanimous opinion even in American politics regarding this bill. Some lawmakers want President Trump to publicly support the proposal, while some leaders believe that harsh economic action on countries like India and China could affect global trade and supply chains.

What will happen next?

At present this proposal has not become law. Before it can be implemented, it will have to be approved by both houses of the US Congress. If the bill is passed, it could have a wide-ranging impact on America's trade relations with many countries including India and the global energy market.