Donald Trump's Tariff Waiver Not India-Specific, Says Kanwal Sibal As Experts Flag Reversal Risk

New Delhi: US President Donald Trump's recent waiver of the Lindsey Graham Sanctioning Russia and Iran Act (SRIA) has provided some respite to India, whose exports to the US could have been heavily impacted by the threatened 100% tariffs on Russian oil imports. However, former Foreign Secretary Kanwal Sibal advised caution against interpreting the move as a decision tailored specifically for India.

According to Sibal, once a license was granted for the global sale of Russian diesel, a broader waiver became necessary. Experts caution that the relief provided by the waiver is reversible, as the relevant provisions were merely suspended, not repealed, by Trump. This leaves India and other buyers uncertain about the future actions of the US.

Analysts also speculate that the decision to waive the tariffs may be connected to US Secretary of State Marco Rubio's upcoming visit to India, scheduled for October 19, where he is expected to meet External Affairs Minister S Jaishankar and discuss long-term energy cooperation. The waiver currently protects Indian exporters from immediate tariff threats, particularly benefiting sectors like garments and handicrafts.

However, the underlying provisions remain in place, posing a threat to the waiver, which leaves India uncertain about the future US policy.