India, China to face 500% US tariff? Trump backs Russia sanctions bill

Business Standard

a day ago

US President Donald Trump has endorsed a Senate sanctions bill proposing tariffs of up to 500 per cent on countries such as India and China for purchasing oil and energy products from Russia. The legislation aims to step up pressure on Russian President Vladimir Putin as the Ukraine conflict continues.
Speaking to ABC News on June 30, Senator Lindsey Graham said Trump had urged lawmakers to advance the bill for a vote. 'This is a big breakthrough,' he said, noting that the measure could strengthen Trump's leverage in potential negotiations with Putin.
'If you are buying products from Russia and you are not helping Ukraine, then there's a 500 per cent tariff on your products coming into the United States,' Graham said, adding that India and China account for 70 per cent of Russia's oil sales, which help fund its military operations.
Waiver provision gives Trump implementation control
Although Trump supports the bill, it includes a waiver clause that would allow the US President to exempt countries from sanctions, offering flexibility in enforcement. Graham said he had secured support from 84 co-sponsors, calling the legislation an 'economic bunker buster' targeting nations enabling Russian aggression.
Originally introduced in March, the bill is expected to be tabled in the Senate in August, NDTV reported.
Trump optimistic on breakthrough in India-US trade deal
Meanwhile, Trump has expressed optimism about the US-India trade negotiations. 'I think we are going to have a deal with India. And that is going to be a different kind of a deal. It is going to be a deal where we are able to go in and compete,' Trump said, reported news agency ANI. 'Right now, India does not accept anybody in. I think India is going to do that.'
Urgency builds ahead of deadline
With the deadline looming, India has toughened its stance, particularly on agriculture. Reports suggest India's delegation, led by Chief Negotiator Rajesh Agrawal, has extended its stay in Washington to conclude an interim pact. Negotiations originally set for Thursday and Friday have been extended to accommodate last-minute deliberations, ANI reported.
If a deal is not reached by July 9, a set of 26 per cent reciprocal tariffs — first imposed during Trump's previous term and temporarily suspended — would be automatically reinstated.
Agriculture remains the biggest hurdle
India's agricultural sector remains a sensitive issue in the talks, given its reliance on small-scale farmers. The country has never opened its dairy market in any prior trade agreement, a position it appears unwilling to alter despite US pressure.
The US seeks greater access to India's markets for products such as apples, tree nuts, and genetically modified crops. Meanwhile, India is reportedly pushing for better entry for labour-intensive exports, including textiles, gems and jewellery, leather goods, and farm produce such as shrimp, bananas, and oilseeds.
Both sides are currently focused on securing an interim agreement, with plans for a larger bilateral deal later. The first phase is targeted for fall 2024, with a long-term goal to increase annual bilateral trade from the current $191 billion to $500 billion by 2030.