US Suspends 100% Tariffs on India and China

India and China faced the risk of 100% tariffs for purchasing oil from Russia—a measure that had already been passed by the US Congress. These sanctions and tariffs were set to take effect starting tomorrow. However, at the last minute, US President Donald Trump exercised his authority to halt the sanctions against Russia. As a result, India, China, and several other nations have, for the time being, been spared from these 100% US tariffs.

According to Trump, "This suspension has been granted in the national interest."

In an executive order issued on Friday night (October 16), Trump stated, "I hereby suspend the application of the sanctions, restrictions, and tariffs outlined in the Graham Act. I have certified to Congress that granting such a waiver at this time is in the national interest of the United States."

It should be noted, however, that the implementation of these Russia-related tariffs has merely been suspended; President Trump retains the authority to reinstate them at any time in the future.

The legislation signed by Trump is titled the "Lindsey O. Graham Sanctioning Russia and Iran Act." It is named after Senator Lindsey Graham, a staunch supporter of Ukraine in Washington, who passed away in July of this year, shortly after returning from a visit to Kyiv.

The Act provided President Trump with a 30-day window to impose 100% tariffs on all goods originating from the top five buyers of Russian crude oil: China, India, Slovakia, Hungary, and Azerbaijan. Furthermore, the legislation included provisions for imposing sanctions on various Russian entities, as well as a 500% tariff on energy products imported into the United States from Russia.

This 30-day period was set to expire on October 18.

What is this legislation? The objective of this legislation was to curtail the financial resources enabling Russia to continue its war against Ukraine. It targeted Russian government officials, banks, interests within the energy sector, and foreign entities that supported Moscow’s military operations. The law granted Trump the authority to impose tariffs on countries that conducted business with Russia, with the aim of reducing their dependence on Russian oil and gas. Furthermore, it included provisions for sanctions against Russian President Vladimir Putin and high-ranking officials of the Russian government.

Had this legislation been implemented, it would have paved the way for the imposition of tariffs of up to 100 percent on countries purchasing oil and gas from Russia—a move that would have placed 10 nations, including India and China, at risk.

Source: NDTV