The U.S. Senate passed a Russia sanctions bill that could subject India to additional tariffs as high as 100% if the country continues purchasing Russian oil and meets the legislation’s other requirements.

Background

The measure still needs House approval and President Donald Trump’s signature. Even if enacted, the bill would not automatically impose a 100% tariff on India.

Lawmakers named the legislation for the late U.S. Sen. Lindsey O. Graham (R-South Carolina), who championed the sanctions package before his death. Beyond tariffs, the bill would sanction Russian officials, financial institutions and vessels used to evade existing restrictions.

A separate provision would direct the President to raise tariffs on imports from Russia itself to as high as 500%, subject to the bill’s exceptions and waiver authority. Most of the legislation, including its tariff provisions, would expire five years after enactment.

Section 113 directs the President to increase duties on goods from qualifying countries to rates as high as 100% within 30 days of enactment. Those duties would apply in addition to existing tariffs and remain subject to the legislation’s humanitarian and other specified exceptions.

Impact on India

India’s Russian oil purchases make the country a potential target. Indian refiners imported a record 2.64 million barrels per day from Russia in June, up 37.4% from May and equal to half of India’s total oil imports.

India currently faces an additional 10% Section 301 tariff on covered products of India, subject to specified exemptions. The Office of the U.S. Trade Representative imposed the duty beginning July 24 as part of an action covering 60 economies over failures to impose and effectively enforce bans on imports produced with forced labor.

Original reporting: The Dallas Express — read the source article.