Some of India’s exports to the United States may attract duties as high as 100%, considering that the Senate of the United States has passed the sanctions bill aimed at increasing the pressure on those countries that are doing business with Russia. The bill is very significant for U.S. lawmakers but it is not yet enacted.
Sanctions bill seeks to enhance the sanctions being imposed on Russia by focusing on countries which do trade in Russian energy and other commodities. Since the beginning of the Russia-Ukraine war, India is among the top purchasers of Russian oil at reduced rates. Therefore, India is among those countries which will face sanctions in case the bill passes.
If the bill passes and becomes a law, it will provide room for U.S. authorities to impose duties of 100% on exports coming from countries that have supported the economy of Russia by continuing trading with Russia.
This move has caused serious worries among exporters and experts on trade issues, saying that the introduction of higher tariffs will affect trade flows, increasing costs for businesses working between India and the USA. Engineering goods, textiles, pharmaceuticals and manufacturing industries will experience some uncertainties due to the possible implementation of the bill.
The Indian government has always justified the energy policy of the country, saying that all the decisions made are based on national energy security and economic needs. India has also said that it is for the peace and dialogue and has a foreign policy of its own.
As for the further consideration of the bill in other legislative steps of the USA, all governments and businesses will watch carefully how the situation will develop. The final result will be important for international trade and diplomacy as well as for countries that have economic connections with Russia.
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