Us Tariffs On Russian Oil: India examining new US tariff powers targeting Russian oil buyers: Piyush Goyal
India is studying the details of proposed US tariffs targeting countries that buy Russian oil, Union commerce and industry minister Piyush Goyal said on Monday, days after the US House of Representatives passed legislation aimed at increasing economic pressure on Russia over its invasion of Ukraine.Addressing a press briefing, Goyal said, “Details are currently coming out. We will study them and discuss them with you at an appropriate time”.The legislation authorises US President Donald Trump to impose tariffs of up to 100% on China, India and other countries to reduce their dependence on Russian energy, according to Reuters.The move comes as India and the US continue to work towards a broader trade agreement, while New Delhi has also stressed the importance of protecting its trade and economic interests.
India assessing impact of tariff move
Goyal’s comments come after the US House passed the sanctions and tariff legislation last week. The measure gives the US president the authority to impose tariffs of up to 100% on goods from major purchasers of Russian petroleum or natural gas, subject to conditions in the legislation.The proposed tariffs do not automatically mean that India will face a 100% duty. The legislation provides the US administration with the authority to impose tariffs of up to that level, while also allowing for waivers under specified conditions.India remains one of the major buyers of Russian crude. Its purchases of Russian oil increased substantially after the start of the Ukraine war, while the share of Gulf countries in India’s crude imports declined.
Trade ties face fresh uncertainty
India had earlier said that possible US tariffs linked to Russian oil purchases could have implications for bilateral ties and global energy markets.External affairs ministry spokesperson Randhir Jaiswal had said India was committed to protecting its trade and economic interests and wanted a “balanced and mutually beneficial” trade relationship with the US.“We have made clear our determination to take all necessary measures to protect our trade and economic interest… govt will work closely with Indian trade and industry bodies to deal with the implications of developments related to the legislation,” Jaiswal had said.“Our interest in a balanced and mutually beneficial trade relationship with the US needs no repetition,” he added.India and the US have been negotiating a bilateral trade agreement, with the two sides having earlier finalised an interim trade framework.The latest US legislation could add another issue to those discussions.
Russian oil remains key to India’s energy sourcing
India has defended its purchases of Russian crude on the grounds of securing affordable and reliable energy supplies.India imports more than 85% of its crude oil requirements and around half its natural gas. Indian Ambassador to the US Vinay Kwatra has described the country’s energy sourcing as a national responsibility aimed at securing adequate, affordable and uninterrupted supplies.The new US legislation is intended to increase economic pressure on Moscow by targeting countries that continue significant purchases of Russian energy.The bill’s passage has also drawn reactions from Russia and China. Kremlin spokesman Dmitry Peskov described additional US sanctions as “unfriendly actions” and said they could complicate efforts to find a peace settlement in Ukraine.China has also opposed the use of US tariffs against countries buying Russian energy, with its foreign ministry describing such measures as “long-arm jurisdiction”.
