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New US bill proposes up to 100% tariffs on India for Russian oil purchase

From Hindustan Times · () English

Summarized and contextualized by DistantNews.

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  • A bipartisan U.S. Senate bill proposes tariffs up to 100% on exports from India, China, and three other countries for purchasing Russian oil.
  • The bill, backed by the White House, aims to reduce Russia's energy revenues and pressure an end to the Ukraine war.
  • The proposed tariffs are a softened version of a previous bill that suggested up to 500% tariffs, with the final rate to be determined by the U.S. Trade Representative.

A new bipartisan bill in the U.S. Senate proposes imposing tariffs of up to 100% on exports from India, China, and three other nations for their continued purchases of Russian oil. The legislation, which has received backing from the White House, is expected to be passed before August.

It imposes tariffs that are targeted, narrowly limited to the five major purchasers, up to 100 percent, with waiver authority that is narrowly tailored and constricted.

— Senator Richard BlumenthalDescribing the scope and limits of the proposed tariffs in the new sanctions bill.

Its primary objectives are to cripple Russia's revenue from energy exports and to exert pressure for an end to the conflict in Ukraine. Senator Richard Blumenthal announced the bill, specifying that the targeted tariffs would apply to the five major purchasers of Russian oil: China, India, Slovakia, Hungary, and Azerbaijan. The bill includes exceptions for natural gas purchasers who buy less than 15% of total Russian imports and are actively reducing their consumption. It also encompasses broad sanctions against Russia's key energy, defense, financial, and industrial sectors.

And those five major purchasers right now of oil are China, India, Slovakia, Hungary, Azerbaijan.

— Senator Richard BlumenthalIdentifying the primary countries targeted by the proposed oil tariffs.

This new bill represents a more moderate approach compared to the "Sanctioning Russia Act" introduced last year, which proposed tariffs as high as 500% on countries buying Russian energy, including India. That earlier bill failed to progress due to concerns over its extreme provisions and lukewarm support from then-President Trump. Democratic Senator Jeanne Shaheen emphasized that the current bill features significantly narrower tariff provisions.

The decision about the exact rate will be determined by the United States Trade Representative.

— Senator Richard BlumenthalExplaining who will set the specific tariff rates.

According to Senator Blumenthal, the bill has sufficient support to pass the Senate before August. The specific tariff rate will be determined by the U.S. Trade Representative, following extensive discussions. "I think it will be set at an appropriate level to discourage China, India and other major purchases of Russian oil and gas," Blumenthal stated. The legislators also acknowledged the late Senator Lindsey Graham's significant role in advancing this legislation prior to his passing.

I think it will be set at an appropriate level to discourage China, India and other major purchases of Russian oil and gas.

— Senator Richard BlumenthalStating the intended effect of the tariff rates.
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Originally published by Hindustan Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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