New Delhi: Will tariffs now be imposed on Russian oil as well? Many such questions are arising among people. If this happens, Russian crude oil will become significantly more expensive. The US House of Representatives has passed a major bill imposing new sanctions on Russia. The bill’s passage has heightened concerns in India. The reason for this concern is a provision in the bill that empowers the US President to impose tariffs of up to 100% on countries purchasing oil and gas from Russia.
Notably, during the bill’s discussion, India was included in a list of ten countries that could potentially face these tariffs. It is important to understand that a 100% tariff has not yet been imposed on India; however, the bill grants the President the authority to do so. If such a measure were implemented, purchasing crude oil would become extremely costly for India.
How a 100% tariff could be imposed on India
Under this bill, the authority could be granted to impose tariffs of up to 100% on countries that purchase large quantities of crude oil or natural gas from Russia. Countries perceived as helping Russia evade US sanctions could face increased difficulties. Furthermore, the version passed by the Senate specifically mentions the five largest buyers of Russian oil and gas.
Meanwhile, during the House discussion, Democratic Congressman Steny Hoyer introduced an amendment explicitly listing ten countries. These include India, China, Turkey, Azerbaijan, Hungary, Slovakia, the UAE, Singapore, Kazakhstan, and Kyrgyzstan. This implies that while a 100% tariff could be imposed on India, it would not be applied automatically.
Understand the impact on India.
India is a major importer of Russian oil. Following the imposition of stringent Western sanctions on Russia, the landscape of global energy trade shifted, and India increased its purchases of Russian oil. A key objective for the US in this context is to exert pressure on the revenue Russia generates from oil and gas; according to the US, these energy earnings help finance the ongoing war in Ukraine.
Consequently, pressure is also being mounted on nations that import energy from Russia. Should Donald Trump decide to impose tariffs of up to 100 per cent on India, it would impact goods exported from India to the US. This could lead to a significant rise in the prices of Indian products in the American market and place increased pressure on Indian exporters.
