Trump Backs Russia Sanctions Bill, Potentially Hitting India's $7B Exports Hard
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In a move that could significantly impact India's exports to the US, President Donald Trump has expressed support for a new Russia sanctions bill. The bill, known as the Sanctioning Russia Act of 2025, aims to penalize countries that buy Russian oil, including India, by imposing a 500% tariff on their goods and services. The bill has gained significant bipartisan support in the US Senate, with 84 co-sponsors, and could be put to a vote as early as next week. Despite this, experts are divided on the bill's chances of passing, with some predicting a bleak future for India's exports to the US. India's goods exports to the US grew to $7 billion in November, a 22% increase from the previous year, despite a 50% tariff imposed by Trump in August. However, a 500% tariff would effectively shut down Indian exports to the US, which now exceed $120 billion annually. The bill's proponents, including Senator Lindsey Graham, argue that it will give President Trump the leverage needed to incentivize countries like India to stop buying cheap Russian oil, which finances Vladimir Putin's war machine in Ukraine. However, others have expressed concerns about the bill's prospects and its potential impact on India's economy. The proposed bill allows the President to issue a one-time waiver for a country if it is deemed to be in the national security interests of the US. While the bill has not yet been put to a vote, President Trump's support for it raises concerns about the potential consequences for India's exports to the US. Experts are divided on the bill's prospects, with some predicting a tough road ahead for its passage. However, others believe that bipartisan support and the President's endorsement make passage more likely. In the midst of ongoing diplomatic efforts to end the Ukraine war, this legislative effort aims to pressure countries like India to reconsider their purchases of Russian oil. Whether the bill will pass remains to be seen, but its potential impact on India's economy is a significant concern.
