America’s new ‘tariff bomb’! India and China may face 100 percent shock if they buy oil from Russia?

US Russia Oil Tariff Bill: In the US, the bill imposing 100% tariff on oil purchases from Russia has received tremendous support. A group of more than 60 US senators have supported this bill. This law will impose tariffs of up to 100% on countries that continue to buy crude oil and natural gas from Russia. This is being considered one of the toughest steps taken by the US to stop Russia’s funding.

With the approval of 60 senators, hopes of passing the bill have increased. If passed, countries like India, China, Azerbaijan and Hungary would face 100% tariffs on buying Russian oil. This bill was written by Senator Lindsey Graham, who died suddenly this week after returning from Ukraine.

Exemptions to US uranium imports and those of European allies

However, the bill also exempts US uranium imports and European allies who continue to buy limited amounts of Russian gas. This bill exempts 15 European buyers. They import less than 15% of their total gas and are taking steps to reduce their dependence. This means that no tariff will be imposed on these countries purchasing gas from Russia. The bill also exempts the purchase of Russian uranium, which the US buys in large quantities from Russia.

With the support of more than 60 senators, it also has the support of the White House. The political importance of this bill has increased after Senator Lindsey Graham (R-S.C.) suddenly passed it. Before his death, he had spent almost two years in making this law in collaboration with the administration.

Tariff on top five oil purchasing countries for 12 months

Section 113 is the main part of this bill. It directs the President to impose tariffs of up to 100% on goods imported from countries identified as the top five importers of Russian crude oil or natural gas in the preceding 12 months, or from countries identified as among the top five importers of Russian oil. It is believed that China and India are the main targets of this bill.

This bill also allows imposition of up to 500% tariff on goods imported directly from Russia. There is also a provision for strict ban against the Kremlin’s political and military leadership, its biggest banks and companies associated with Russia’s defense industrial base.

America’s hypocrisy

Although the scope of the bill is very large, it clearly exempts the purchase of uranium from the ban. Pursuant to section 114(e), the Act’s rules do not apply to imports of low-enriched uranium subject to an existing exemption under the USEC Privatization Act, nor to medical isotopes exempt under that Act.

The exemption is necessary because Rosatom, Russia’s state nuclear company, remains a major supplier of enriched uranium to US nuclear power plants, while the bill also calls for separate sanctions against Rosatom’s leaders. Critics of this rule argue that it shows that the US is not ready to completely eliminate its energy dependence on Russia, while it is demanding other countries to do so.

Gas discount for Europe

This bill is also for those European friends who keep importing small quantities of Russian natural gas. Under Section 113(d), if a country imported less than 15% of its total gas exports from Russia last year, it will not face new tariffs on gas purchases.

The exemption applies only to natural gas, not crude oil, and does not apply to countries that are among Russia’s top five oil buyers. Many EU member states still import limited quantities of Russian pipeline and liquefied natural gas as they seek to diversify their supply sources.

presidential immunity

The law also gives the President broad authority to waive almost any ban or tariff under the bill, provided Congress is notified and given 30 days to object through a joint resolution of disapproval.

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