New Delhi: US President Donald Trump has approved the introduction of a bill in the Senate to impose 500 percent tariffs on countries trading with Russia, including India and China, Senator Lindsey Graham said during an interview published Sunday.
“Big breakthrough here. So, what does this bill do? If you’re buying products from Russia and you’re not helping Ukraine, then there’s a 500 percent tariff on your products coming to the United States. India and China buy 70 percent of Putin’s oil. They keep his war machine going,” Graham said in an interview with ABC News.
The US Senator added: “My bill has 84 co-sponsors. It would allow the president to put tariffs on China, India, and other countries to stop them from supporting Vladimir Putin’s war machine and get him to the table. For the first time yesterday, the president told me … I was playing golf with him [Trump]. He says, ‘It’s time to move your bill.’”
Graham highlighted that the bill was likely to be brought to the Senate floor after Congress reconvenes in August, following the July break. The Senator said his bill, once passed, would empower Trump to impose the tariffs but leave the final decision to do so in the hands of the US president.
Graham is a co-sponsor of the legislation alongside his Senate colleague, Richard Blumenthal.
“We are going to give President Trump a tool in the toolbox,” Graham said, pointing out that Trump was likely to sign such a bill. Initially, Graham proposed the bill at the end of March but postponed its introduction as the White House had disallowed more sanctions on Russia so far, with Trump seeking to repair ties with Russian President Vladimir V. Putin.
According to reports, the White House has even pressed Graham to water down the bill. While India and China are the largest purchasers of Russian oil—roughly 70 percent—the bill would likely allow the US President to impose such tariffs on any country purchasing energy products from Moscow, including uranium.
Graham, in the past, has described the bill as an “economic bunker buster” while referring to the ordinance used by the US to attempt strikes on underground uranium enrichment facilities at Fordow and Natanz, Iran.
The bill aims to strip funding for Russia, forcing the country to come to the table to negotiate a settlement over the war with Ukraine.
If the bill passes and the US President does impose the sanctions, it would essentially be a hard break in trade with Beijing and New Delhi—two of its significant trading partners.
For India, the US is the destination for a majority of its exports. The passage of the bill would add further challenges for New Delhi-Washington, D.C., ties.
India and the US are currently negotiating the first tranche of their bilateral trade deal to stave off the imposition of additional tariffs first announced by Trump in April. The deadline for ending the pause on the new tariffs is 9 July. The negotiations witnessed some early momentum, but challenges remain, especially surrounding the agricultural sector.
External Affairs Minister S. Jaishankar flew to the US on 30 June for the meeting of the foreign ministers of the Quad member countries—the US, India, Japan, and Australia. He will be in the US on 1 and 2 July and will likely also hold bilateral talks with his counterparts.
For India, Russia has become a significant energy partner, with New Delhi importing over $50 billion worth of energy goods from Moscow. Since the war with Ukraine began, Russia has faced increasing sanctions from the West. However, under Trump, the US has sought a peace agreement, with a deal announced for a partial ceasefire in Ukraine last month. However, it has not worked out.
(Edited by Madhurita Goswami)
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