Tariff Threat by the U.S.
The United States has warned India and China. If they keep purchasing oil from Russia, their products would face a 500% tariff. This is proposed by Republican Senator Lindsey Graham, who made a statement in a recent interview. He added that a bill will be filed in the U.S. Senate, backed by former President Donald Trump.
Senator Graham said:
"Russia's allies that import oil should be hit with stiff tariffs. India and China are now importing approximately 70% of Russian exported oil."
The bill would be introduced as early as August. President Trump already signed off on this plan, said Senator Graham.
Possible Impact on India and China
If passed into law, the bill may have far-reaching economic impacts for India and China. India and China import much of their crude oil from Russia. The tariffs would also be imposed on important Indian exports like pharmaceuticals and textiles, rendering them uncompetitive in the U.S. market.
Senator Graham also proposed an alternate trade strategy. He will introduce incentives to nations that aid Ukraine, instead of conducting business with Russia.
U.S.-India Trade Deal
In a related news update, Donald Trump stated that the U.S. is negotiating a new trade agreement with India. It would involve reduced tariffs.
Trump stated:
"We will sign an agreement with India very soon. It will be a new agreement with minimal tariffs. India has not yet agreed to it, but negotiations are underway."
The two nations are in efforts to seal the trade agreement by July 9. Negotiations are still underway.
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