Donald Trump signs Russia sanctions bill, paves way for 100 % tariffs on India
PTC News Desk: US President on Friday signed the controversial bill into law that gives his administration new powers to impose tariffs up to 100 % on countries buying Russian oil and gas potentially putting India and China in the crosshairs.
The legislation requires US President Donald Trump to impose tariffs of up to 100% within 30 days on goods imported from the five biggest buyers of Russian crude oil or gas. It also covers countries that knowingly buy new supplies of Russian oil or gas after the law comes into effect, as well as countries that are among the top five helping Russia avoid sanctions.
India and China are among the biggest buyers of Russian oil. However, the legislation does not name any specific countries or clearly explain how the top five countries would be identified. This gives the Trump administration considerable flexibility in deciding which countries could face the tariffs.
The law could open the way for very high tariffs on Indian goods entering the US, although its immediate impact is still unclear. Reuters reported that analysts believe Trump may be cautious about imposing such measures because they could increase consumer prices and energy costs ahead of the November midterm elections.
Trump agreed in July to support the legislation after it had been delayed for more than a year. US officials reportedly supported the bill to give Trump more leverage before his planned meeting with Chinese President Xi Jinping next week, according to congressional sources.
White House legislative director James Braid said the legislation gives the executive branch new tariff powers for the first time in nearly 40 years.
Uncertainty for India
The legislation has raised concerns because it is unclear which countries could eventually be targeted.
Jeannette Chu, vice president of the National Foreign Trade Council, said there were different views about which countries could face tariffs. India, Brazil, Japan and some European Union countries have been mentioned.
India has warned that additional US tariffs could affect bilateral relations. China has also criticised the measure, calling it “long-arm jurisdiction” without a basis in international law.
Critics say the broad wording gives the US president too much power to decide which countries should be targeted. Lawyer Laura Brank argued that the wide authority could potentially be misused.
However, the conservative Foundation for Defense of Democracies has said the bill provides enough criteria to identify the countries that could face tariffs and does not create a way to impose unrelated tariffs.
- PTC NEWS
