New US Law Authorizing 100% Tariffs on Indian Goods Raises Concerns Among Indian Exporters

A new US law signed by President Donald Trump authorizes tariffs of up to 100 per cent on goods from countries, including India, that rank among the top five purchasers of Russian crude oil or natural gas. Indian exporters and trade bodies have expressed concern over the uncertainty this creates for India-US trade relations, while think tank GTRI has advised against compromising India's energy policy in response to tariff pressure. Bilateral merchandise and services trade between the two countries exceeds USD 260 billion annually, with both governments targeting USD 500 billion by 2030.

Trump signed the Sanctioning Russia and Iran Act on September 18, a piece of legislation that would allow for the imposition of tariffs on Russia and countries that buy its energy. The law comes into force within 30 days of receiving a presidential signature, requiring tariffs of as much as 100 per cent on imports from any country ranked among the five largest buyers of Russian crude oil or natural gas by volume over the preceding 12 months, though a number of lawmakers raised concerns about the provision. FIEO President SC Ralhan said that tariffs at such levels imposed by the United States would halt export activity, given that importers would be unable to bear duties of that magnitude. The Global Trade Research Initiative has projected that the new law leaves India vulnerable to tariffs of as much as 100 per cent, and that it may be wielded as leverage to push the country toward curtailing its Russian oil imports or accepting a bilateral trade deal on disadvantageous terms, potentially in return for restoring the 18 per cent rate set out in the 6 February joint statement, with the organisation further noting that India would be ill-advised to trade away its energy security in exchange for near-term tariff relief.

New US Law Authorizing 100% Tariffs on Indian Goods Raises Concerns Among Indian Exporters

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New US Law Authorizing 100% Tariffs on Indian Goods Raises Concerns Among Indian Exporters

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