Donald Trump has signed a Russia sanctions law that authorises tariffs on countries buying Russian oil and gas. The move could expose India and China to steep US duties while leaving the administration wide discretion over enforcement.
US President Donald Trump on Friday signed into law a Russia sanctions bill that gives his administration new powers to impose tariffs of up to 100% on countries buying Russian oil and gas, potentially putting India and China in the crosshairs.
The legislation requires Trump to impose tariffs of up to 100% within 30 days on goods imported into the US from the five largest importers of Russian crude oil or gas. It also covers countries that knowingly make new purchases of Russian oil or gas after the law takes effect or rank among the top five countries helping Russia evade sanctions.
India and China are among the biggest buyers of Russian oil, but the legislation does not name specific countries or clearly explain how the top-five lists will be calculated. This leaves the Trump administration significant discretion in determining which countries could face tariffs.
The new law could therefore pave the way for steep tariffs on Indian goods entering the US, although the immediate impact remains uncertain. According to Reuters, analysts said Trump may be reluctant to impose measures that could push consumer prices and energy costs higher ahead of the November midterm elections.
BROAD TARIFF POWERS
The bill, passed by Congress on Wednesday, targets Russia’s energy and defence sectors and its “shadow fleet” of tankers accused of helping Moscow evade sanctions. It also gives Trump authority to waive tariffs or sanctions on national security grounds.
The legislation comes after Trump agreed in July to move forward with the bill following more than a year of delays. US officials had pushed for its passage to give Trump additional leverage ahead of his planned meeting with Chinese President Xi Jinping next week, congressional sources said.
White House legislative director James Braid said the legislation marks the first time in nearly 40 years that Congress has granted new tariff authorities to the executive branch.
UNCERTAINTY FOR INDIA
The legislation has raised concerns because of the lack of clarity over which countries could ultimately be targeted. Jeannette Chu, vice president of the National Foreign Trade Council, said assessments differed over which nations could face tariffs, with India, Brazil, Japan and countries in the European Union among those being discussed.
India has warned that new US tariffs could affect bilateral ties, while China has opposed what it called “long-arm jurisdiction” lacking a basis in international law.
Critics of the legislation argue that its broad language gives the president excessive discretion. Lawyer Laura Brank said the authority could be abused because of the wide powers granted to the president.
However, the conservative Foundation for Defense of Democracies has argued that the bill contains sufficient criteria for determining which countries can be targeted and does not provide a back door for imposing unrelated tariffs.
MIDTERM TIMING ADDS TO PRESSURE
The timing of any new tariffs could also prove politically and economically sensitive. Duties would have to be announced within 30 days, potentially putting their implementation close to the November midterm elections.
Higher tariffs on countries buying Russian energy could disrupt oil supplies and push energy prices higher, adding to inflationary pressure.
Since returning to office in January 2025, Trump has imposed tariffs of up to 50% on more than 80 countries. The Supreme Court has struck down many of those measures, ruling that Trump had exceeded his authority.
Legal challenges to tariffs imposed under the new law could be more difficult because Congress has explicitly authorised the duties.
The legislation also gives Trump the ability to waive tariffs or sanctions on national security grounds, allowing the administration to decide how aggressively to use the new powers.
“The definitions are vague and the president has kind of a get-out-of-jail-free card in the form of a waiver,” Reuters quoted Ben Harris, a former senior Treasury Department official under former President Joe Biden.
Article source: indiatoday.in
