Russian sanctions bill: US planning to impose 500 per cent tariffs on nations trading with Moscow- How will this impact India?

The United States is planning to impose a 500 per cent tariff on the products of those countries that are still doing trade with Russia.

In an interview with ABC News, Senator Lindsey Graham said that he wanted the US to impose tariffs to stop them from supporting Vladimir Putin's war machine.

Moscow launched full-scale invasion of Ukraine three years ago on February 24, 2022.

"Big breakthrough here. So what does this bill do? If you're buying products from Russia and you're not helping Ukraine, then there's a 500 percent tariff on your products coming into the United States. India and China buy 70 percent of Putin's oil. They keep his war machine going. My bill has 84 co-sponsors. It would allow the president to put tariffs on China and India and other countries to get them -- stop them from supporting Putin's war machine, to get him to the table. For the first time yesterday, the president told me," Graham said.

How this will impact India?

India has elevated Russia to its primary oil supplier following a substantial increase in Russian crude oil imports in June, exceeding the combined purchases from prominent Gulf suppliers including Saudi Arabia and Iraq.

The previous month's imports from Russia stood at 1.96 million barrels per day (bpd).

The potential implementation of the US bill could result in extensive 500 per cent tariffs on Indian goods entering America. Nevertheless, India is currently negotiating a trade agreement with the US, which is anticipated to significantly reduce US tariffs on Indian products.