The United States has not imposed a new blanket 100% tariff on Indian goods.
The U.S. Senate passed a Russia sanctions bill Friday 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. 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.
The Senate approved H.R. 5334, as amended, 86-11 on August 7. U.S. Sens. John Cornyn (R-Texas) and Ted Cruz (R-Texas) voted for the bill.
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. It would also target people affiliated with specified Russian energy projects, restrict U.S. investment and exports involving Russia’s energy sector, and extend the Iran Sanctions Act through 2031.
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.
What the bill actually does
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.
A country would qualify if it knowingly makes new purchases of Russian crude oil or natural gas beginning 30 days after enactment and ranks among the five largest importers of either product during the preceding 12 months. The provision also covers countries among the top five for facilitating Russian oil sanctions evasion during that period.
The President could waive a duty after certifying to Congress that the waiver serves the national interest.
At least 10 days before imposing or changing a duty, the President or U.S. trade representative would have to submit a written justification to Congress explaining the rate and the methodology used to determine that the country qualified.
Within 180 days after the initial duties and every 180 days thereafter, the trade representative would have to identify the five largest importers of Russian crude oil and the five largest importers of Russian natural gas and impose duties on those countries.
U.S. Sen. Jim Risch (R-Idaho), chairman of the Senate Foreign Relations Committee, said before the vote that the legislation would “cut off the flow of cash that powers Putin’s war machine.”
Why India could qualify
The legislation does not name India. Federal officials would have to determine that it meets the statutory test before the provision applied.
India’s Russian oil purchases nevertheless 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, Reuters India increased those purchases after a temporary U.S. sanctions waiver allowed refiners to make up for a Gulf supply shortfall caused by the Strait of Hormuz blockade. Refiners continued buying oil from non-sanctioned Russian entities after the waiver ended, according to the same Reuters report. The bill’s top-five buyer test turns on the oil’s Russian origin, not whether the seller itself is sanctioned.
A separate 10% tariff is already in force
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.
India received the 10% rate after adopting a forced-labor import prohibition.
As previously reported by The Dallas Express, Trump removed a separate additional 25% tariff on Indian imports in February after India committed to stop purchasing Russian oil. The executive order directed federal officials to monitor India’s purchases and consider reimposing the tariff if India resumed importing Russian oil.
House must act
The Senate used a House-passed tax measure as the vehicle for the sanctions package. The House must now accept the Senate amendment or negotiate another version before sending the legislation to Trump.
The House had not acted on the Senate amendment as of Sunday afternoon.
U.S. Sen. Rand Paul (R-Kentucky) attempted to remove the Russian-energy tariff provision while leaving the legislation’s other sanctions intact. His amendment failed 32-64. Paul argued that the proposed tariffs would raise costs for Americans and wrote in prepared remarks, “Congress should not delegate its constitutional duties to the Executive so shamelessly.”
The Senate vote created a potential pathway to additional tariffs as high as 100% that could apply to India. It did not itself impose such a tariff.
Provided by Dallas Express
