Trump Backs Sanctions Bill Targeting India, China for Russian Oil Buys; 500% Tariffs Loom Over Delhi's Crude Imports
Trump’s decision to support a Bill imposing up to “500% tariffs” on nations that bought Russian oil came under double pressure on energy security in India on Thursday.
Aadrika Tayal 
New Delhi (India) January 8: US President Donald Trump has essentially given permission to the Russia Sanctions Bill that could be used to punish Moscow's trading partners, such as India, China and Brazil, for buying Russian oil, said Republican Senator Lindsey Graham.
Graham-Blumenthal Bill Empowers Trump to Hit Russian Oil Buyers
Graham Blumenthal sanctions bill, if enacted, would empower the US President to impose tariffs of up to 500 per cent on countries that knowingly purchase Russian oil or uranium and fuel Russian President Vladimir Putin's war machine.
The tough sanctions package is aimed at dealing a major economic blow to Moscow as the Trump administration is still involved in talks to find a way to stop the war that broke out with Russia's invasion of Ukraine.
Why Beijing Dodges US Tariffs Despite Putin-Fueled Purchases?
India, China, and Brazil are some of the main targets because they continue to buy Russian crude oil. But the US, although it has named all these countries at the same level, has taken very different paths towards India and China, thus it has been relatively gentle with China and is tough on India.
One of the major reasons is that Beijing controls the supply of rare earth minerals which are very essential for electric vehicles, semiconductors, defence equipment and renewable energy technologies.
China still is the world's largest buyer of Russian oil and yet it has not been subjected to additional tariffs. On the contrary, on August 12, President Trump postponed the imposition of new duties on Chinese imports and allowed tariffs to stay at 30 per cent which is way below the level of those on Indian goods.
Why India Faces Tougher US Tariffs Than China?
India, on the other hand, lacks such strategic leverage. It is true that after the outbreak of the war in Ukraine, New Delhi has turned into one of the major buyers of cheap Russian oil, yet, it is still missing the kind of chokehold China has over the crucial supply chains.
Trump has on several occasions criticised India's trade policies and he has accused New Delhi of keeping high tariffs and trade barriers for US goods. The tariffs, amounting to 50%, were a response to India's massive purchases of Russian oil, which the US interprets as a way of helping Russia's economy during the conflict in Ukraine.
Modi-Trump Tensions Rise as Tariffs Tie to Ukraine Conflict Aid
US President Donald Trump had earlier made a statement saying that PM Modi was miffed because India was heavily fined for buying Russian oil. He also threatened that the US might further increase tariffs if India does not help on the Russian oil issue, thus, he directly tied the pressure to the Russia Ukraine war.
India has been blamed for helping Moscow by her discounted Russian crude purchases by Trump and he has said that this is why he has imposed such a high tariff on Indian goods.
Besides, Trump has been using tariff pressure as a leverage to get India to do his bidding, hinting at the fact that New Delhi knew of his displeasure and yet they decided to keep their trade relationship stable.
