US signs new sanctions risking heavy tariffs on India
US President Donald Trump officially signed the Russia sanctions bill on Friday, granting his administration fresh powers to enforce import tariffs up to 100%. This legislation specifically targets nations purchasing Russian oil and gas, placing major buyers like India and China in a vulnerable position. This law legally requires the president to levy import duties as high as 100% within 30 days. These penalties apply to products originating from the five biggest international buyers of Russian crude oil or natural gas. It further penalises any nation consciously acquiring new energy supplies from Moscow after enactment, or those ranking among the top five facilitators helping Russia bypass restrictions. Even though India and China lead global purchases of Russian energy, lawmakers left out specific country names and exact calculation methods for these lists. Such ambiguity hands the current administration immense flexibility in choosing targets for these trade penalties.
Market experts believe political timing plays a crucial role regarding immediate enforcement. They suggest Trump might delay actions that could inflate consumer energy expenses just before the November midterm elections. Congress approved this measure on Wednesday to target Russian energy operations, defence industries, and the shadow fleet of oil tankers accused of bypassing global rules. James Braid, the White House legislative director, pointed out that Congress has not granted such fresh tariff powers to the executive branch in nearly 40 years. National Foreign Trade Council vice president Jeannette Chu observed widespread debate regarding potential targets. She noted that discussions frequently mention India, Brazil, Japan, and several European Union member states.
Following his return to office in January 2025, Trump placed tariffs reaching 50% on over 80 different countries. While the Supreme Court previously blocked many of those executive actions, successfully challenging this new law will be much harder since Congress explicitly approved the duties. The Foundation for Defense of Democracies maintains that the text outlines adequate criteria for selecting targets, arguing it prevents the arbitrary application of unrelated trade penalties. Conversely, former senior Treasury Department official Ben Harris highlighted that the definitions remain extremely vague. He stated the waiver provision essentially acts as a "get-out-of-jail-free card" for the president, leaving the real-world impact of this legislation highly unpredictable.
