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US tariffs on India and China could increase by as much as 500 per cent as early as next week, after President Donald Trump greenlit a bipartisan sanctions bill that would allow Washington to “punish” countries that "knowingly" purchase oil from Russia.
In a post on X, Republican Senator Lindsey Graham said the President cleared the legislation, which will also sanction countries purchasing Russian uranium, after they held a "productive" meeting on Wednesday, adding that it could be put to a vote as early as next week.
Sponsored by Graham and Democratic Senator Richard Blumenthal, the legislation would give President Donald Trump “tremendous leverage” over countries such as China, India and Brazil, incentivising them to stop buying discounted Russian oil that finances President Vladimir Putin’s war in Ukraine, the South Carolina Republican said in his post.
"This will be well-timed, as Ukraine is making concessions for peace and Putin is all talk, continuing to kill the innocent. This bill will allow President Trump to punish those countries who buy cheap Russian oil fuelling Putin’s war machine," he added.
Senate and House leaders have postponed a vote on the legislation, which would also ban US exports of energy products to Moscow and bar investments in Russian energy, after Trump signaled a preference for imposing tariffs on goods imported from India, the world’s second-largest buyer of Russian oil after China.
Last year, Trump escalated his tariff campaign, imposing a 25 per cent reciprocal tariff on Indian imports, along with an additional 25 per cent penalty for purchasing Russian oil, pushing total duties on some products to as high as 50 per cent. The move sharply strained ties between New Delhi and Washington.
Ties between China and the US also deteriorated after a series of escalating tariffs, with Washington imposing a 145 per cent duty on Chinese goods and Beijing retaliating with a 125 per cent tariff on American products.
In the recent past, Trump has hinted at imposing fresh tariffs on India over New Delhi's continued purchase of Russian oil.
Over the weekend, President Trump, speaking to reporters aboard Air Force One, said that Prime Minister Narendra Modi “knew I was not happy.”
Trump added, “PM Modi's a very good man. He's a good guy. It was important to make me happy. They do trade, and we can raise tariffs on them very quickly.”
Late last month, the US President has threatened fresh tariffs on Indian rice after a farmer representative at a White House roundtable complained of dumping by India, China and Thailand.
Talks between India and the US to resolve the tariff impasse have stalled, with Washington pushing hard to prevent steep import duties on American agricultural products.
New Delhi, however, remains steadfast in protecting the country’s farming and dairy sectors.
