US tariff threat puts exporters on the edge
The US Congress passed the Act Wednesday allowing sanctions on Russia's crude exports and tariffs of up to 100% on India, China, and other major buyers of Russian energy. The bill will now be sent to US President Donald Trump for his assent.
New Delhi is awaiting the US Congress' announcement of specific tariffs, product coverage, and implementation timeline for Indian exports under the newly passed Lindsey Graham Sanctioning Russia and Iran Act. The Act allows sanctions on Russia's crude exports and imposes tariffs up to 100% on imports from India, China, and other major buyers of Russian energy.
Experts warn that the US could leverage this act to create an unequal trade agreement with India, using it as a tool for future action under Section 301 or other trade laws. The Federation of Indian Export Organisations (FIEO) expressed concern over the added uncertainty and potential viability issues for exported goods. Apparel Export Promotion Council chairman A Sakthivel suggested that the law is a means for the US to pressure India into lowering tariffs on American goods.
Exporters are monitoring the situation, but some anticipate front-loading of shipments if tariffs are imposed. Sanjay K Jain, managing director at TT Ltd, noted that the act gives the US leverage to impose tariffs, but the US faces high inflation, and such a move would only add to the problem and create uncertainty. The think-tank GTRI cautioned that the US will threaten India with tariffs of up to 100% and may eventually offer a lower rate if India reduces Russian oil purchases and agrees to concessions in a one-sided bilateral trade deal.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
