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India faces 100% tariffs as US Senate passes anti-Russia Bill

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The US Senate has passed a sweeping Russia sanctions Bill that could expose India and China to tariffs of up to 100 per cent on their exports to the US for continuing to buy Russian oil and gas, even as some American senators warned that such a move could hurt their country’s interests.The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was approved by an overwhelming 86-11 vote on Friday and now moves to the House of Representatives. The legislation would give President Donald Trump the power to impose tariffs of up to 100 per cent on imports from countries that are among the largest purchasers of Russian oil or natural gas.India and China, two of the biggest buyers of Russian crude, are consequently among the countries that could come under the proposed tariff regime.The 100 per cent duty, however, is not automatic and has not been imposed on India. The Bill, if enacted, would authorise the President to determine the tariff, subject to the provisions of the legislation. The measure has also exposed divisions within the US Senate over the wisdom of penalising major trading partners. Republican Senator Rand Paul opposed the legislation, warning that imposing punitive tariffs on India and China amounted to America “shooting itself in the foot”.Democratic Senator Ron Wyden also opposed the tariff provisions, raising concerns over their potential economic consequences and the damage they could cause to relations with important partners.The dissent assumes significance for India as New Delhi and Washington are already grappling with contentious trade issues, while the US has repeatedly criticised India’s continued purchases of Russian crude.The legislation marks an expansion of Washington’s pressure campaign against Moscow by seeking to penalise not only Russia but also countries that continue to provide a major market for its energy exports.Besides the tariff provisions, the Bill envisages sanctions targeting Russian officials, financial institutions, energy projects and vessels associated with the transportation of Russian oil. It also contains provisions relating to sanctions on Iran.The legislation has been under discussion for months and was revised from an earlier version that proposed substantially higher secondary tariffs. The current measure limits the tariff authority to countries among the five largest purchasers of Russian oil or gas.The Senate vote, nevertheless, does not make the measure law. It must clear the House before being sent to Trump for his signature. The House could prove a tougher test, with lawmakers divided over granting the President broad authority to impose tariffs on third countries.

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