New Delhi: Signs of renewed trade tensions between India and the US over the purchase of crude oil from Russia are emerging. US lawmakers are moving to impose stricter economic measures on countries that purchase Russian oil. The proposed legislation includes a provision to impose tariffs of up to 100 percent on goods imported from such countries. Reports indicate that India is also among the countries covered by the proposal.
The US move is directly linked to Russia’s energy exports. US lawmakers argue that increasing economic pressure on countries purchasing Russian oil could reduce Moscow’s revenues. Under the proposed framework, the US President could be granted the authority to impose hefty tariffs on imports from the affected countries.
The issue is significant for India, as the country continues to purchase Russian crude oil to meet its energy requirements. During recent discussions between Prime Minister Narendra Modi and Russian President Vladimir Putin, both countries emphasized the need to strengthen their strategic and economic ties.
If an additional tariff of up to 100 percent is implemented, the impact could extend beyond India-US trade. It could increase the cost of exports for Indian companies selling goods in the US market and further strain trade relations between the two countries.
However, the proposal is still going through the legislative process, and further action by the US Congress will be crucial in determining its final form and whether it will ultimately be implemented. India, therefore, faces the challenge of balancing its energy requirements with growing US trade pressure over its purchases of Russian oil.
