Trump has signed the Russia Sanctions Bill, which poses a threat of 100 percent tariffs on countries purchasing Russian oil and gas. This decision can have a big impact on India and China.
The Republican Party-led House of Representatives passed this comprehensive sanctions bill by 262-159 votes, two days after which Trump gave his approval to it. This law has been named ‘Lindsey O’Graham Sanctioning Russia and Iran Act of 2026’, which is named after Senator Lindsey Graham, who was a staunch supporter of Ukraine. Let us tell you that in July this year, Graham died some time after returning from the Kiev trip.
What is special in this law
The main objective of this law is to hit the economic resources of Russia with the help of which it is continuing its war against Ukraine. The law covers Russian officials, banks, energy companies, as well as foreign entities that help Moscow’s military operations. Under this, Trump has got the right to impose tariffs on countries doing business with Russia, so that their dependence on Russian oil and gas is reduced. According to the information, there is also a provision in this law to impose duty of up to 500 percent on Russian goods.
What will be the impact on India?
After this decision of Trump, a new tariff challenge has arisen before India. An amendment by Democratic MP Steny Hoyer talked about bringing a total of 10 countries including China, India, UAE, Turkey, Singapore under the ambit of 100 percent duty. Although this amendment itself does not directly impose 100 percent tariffs on India, if Trump decides to use his powers, these tariffs could also apply to India. This will be an additional burden on top of the 10 percent tariff already imposed in cases involving forced labour.
India gave a strong reply
When the US Parliament passed this bill on Wednesday, India also made it clear that it will take every necessary step to protect its business and economic interests. The Ministry of External Affairs said in its statement that India is committed to ensuring energy security of its 1.4 billion population and will continue this work from different sources. The ministry also informed that high-level talks are already underway with US officials on this issue.