New York : 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. 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.
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. 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.
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.
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.
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.
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