BRICS success stuns White House, Trump targets India with 100% tariff | Gravitas

Amid deepening of ties between India and Russia, more American tariffs loom large...

The US House of Representatives has now advanced a key legislation which will come up for a final vote on Wednesday US time.

If cleared, countries like India and China can face US tariffs up to a staggering 100%.

This bill, known as the Lindsey Graham Sanctioning Russia and Iran Act, was passed by the US Senate in August.

It allows US President Donald Trump to impose up to 100% tariffs on countries under two scenarios.

First, the country should have made new purchases of oil or natural gas from Russia, and be among their five largest importers in the last 12 months.

Alternatively, it applies to the top five countries facilitating Russian oil sanctions evasion in the last 12 months.

As China remains the largest importer of Russian crude oil, followed by India, they are likely to be impacted by this...

But, a key question arises...

Will this bill be used to leverage US interests during trade talks with countries like China and India?

It is worth noting that Xi is set to meet Trump on September 24.

Opposing this bill though, Democrats warned that enhanced tariffs would drive up gas and food prices in US, adding to the woes of American households.

However, the resolution to advance the bill was approved by a 214 to 211 vote with two democratic lawmakers voting in favour of the legislation.

Now, Trump's push for tariffs is not new.

In August last year, US initially imposed a 25% tariff on the import of Indian goods before raising it to 50% over purchase of Russian oil.

In February this year, Trump reduced the tariff to 18% after both countries reached a framework for an interim trade agreement.

But after the US Supreme Court struck down Trump's sweeping global tariffs, India is subject to a 10% tariff rate.

Now, Russia became a major alternative source of crude oil for India owing to disruption of energy supplies from West Asia due to the war.

In July, Russia accounted for over half of India's share of crude oil imports.

Russian imports were up more than 62% as compared a year ago.

In August though, Russian oil imports fell by 26%.

America's move also assumes significance, as it comes just days after India, Russia, China and other key countries of the Global South reaffirmed their unity at the BRICS Summit.

The bonhomie between PM Modi and Russian President Vladimir Putin was on display yet again.

The two leaders reviewed progress in multiple areas including economy, defence, energy, space, skill mobility and people-to-people exchanges.

Additionally, they also shared perspectives on the situation in West Asia as well as Black Sea, where multiple Indian seafarers have lost their lives due to the ongoing Iran and Russia-Ukraine wars.

While agreeing to strengthen the strategic partnership between the two countries, PM Modi reiterated the role of diplomacy in resolving conflicts and expressed India's willingness to assist in peace efforts.

While the bill is yet to become a law, the question for India remains — How much Russian oil can it continue to buy without triggering US pressure over the pending trade agreement....