Washington, Sept 19: US President Donald Trump has signed the Lindsey O. Graham Sanctioning Russia and Iran Act into law, giving the US President expanded authority to impose tariffs of up to 100% on imports from countries that are among the largest buyers of Russian oil and gas.
Trump signed the legislation on Friday, two days after it cleared the US House of Representatives. India is currently among the top five purchasers of Russian energy, meaning it could potentially face higher US tariffs under the new law.
However, the legislation does not specifically name India or China as targets. Instead, it directs the US Trade Representative, in consultation with the Secretaries of State and Energy, to identify the five largest importers of Russian crude oil and natural gas based on purchases during the previous 12 months. The list will be reviewed every 180 days.
The President will have the discretion to impose tariffs at any rate up to the 100% ceiling and is not legally required to impose them.
The legislation's supporters have specifically urged India and China to reduce or end their purchases of Russian energy. Senator Richard Blumenthal, one of the bill's key backers, called on both countries to seek oil and gas supplies from elsewhere after the House passed the legislation.
The new law is aimed at putting economic pressure on Russia by reducing its energy revenues and encouraging Moscow to negotiate an end to the war in Ukraine.
The legislation also includes provisions intended to protect certain European countries from the new sanctions. Countries that meet specified conditions, including keeping Russian natural gas imports below 15% of Russia's total gas exports and taking significant steps to reduce those imports, may qualify for an exemption.
In a separate provision, the law authorises tariffs of up to 500% on goods imported directly from Russia.
The President can also waive tariffs on a country by certifying to Congress that doing so is in the national interest of the United States. For a permanent removal of the tariffs, the country would have to stop purchasing Russian energy and provide reliable assurances that such purchases will not resume.
