Is India in Trouble? Trump-Backed Bill Threatens 500% Tariffs on Russian Oil?
Trump approves bill targeting India for Russian oil purchases.
President Donald Trump has endorsed a bipartisan sanctions bill that empowers the U.S. to impose tariffs as high as 500% on imports from countries continuing to buy Russian oil, directly threatening major purchasers like India, the world's second-largest importer of discounted Russian crude after China. Republican Senator Lindsey Graham confirmed the president's approval following a productive meeting on Wednesday, describing the legislation as providing "tremendous leverage" to halt energy trade funding Russia's war efforts in Ukraine.
The bill, jointly sponsored by Graham and Democratic Senator Richard Blumenthal, includes provisions to penalize nations acquiring Russian oil or uranium, alongside bans on U.S. energy exports to Moscow and restrictions on investments in Russia's energy sector. Graham highlighted its strategic timing, noting Ukraine's recent concessions toward peace negotiations while accusing Russian President Vladimir Putin of ongoing aggression.
This escalation builds on Trump's prior actions, including 25% reciprocal tariffs on Indian goods combined with an additional 25% penalty linked to Russian oil imports, resulting in effective duties reaching 50% on select products and significantly straining Indo-U.S. relations. Recent statements from Trump aboard Air Force One underscored Prime Minister Narendra Modi's awareness of U.S. displeasure, with hints at swift tariff hikes despite acknowledging Modi as a "good man."
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Ongoing trade talks between New Delhi and Washington remain deadlocked, as the U.S. demands reduced barriers for American agricultural products, while India prioritizes safeguarding its domestic farming and dairy industries. Trump has separately flagged potential new tariffs on Indian rice following complaints of market dumping by India alongside China and Thailand.
The advancing legislation intensifies pressure on India's energy diversification strategy, potentially disrupting economic ties and forcing a reassessment of Russian oil reliance amid broader geopolitical shifts in global energy markets.
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