India is expressing concern over a bipartisan bill in the US Senate that could potentially lead to punitive tariffs of up to 100 percent on Indian imports purchasing Russian oil. Nevertheless, a government official stated that current trade negotiations with Washington are proceeding 'reassuringly.'
This bill was passed by the US Senate last week and allows Washington to impose duties on major buyers of Russian energy. This decision followed just six months after the White House revoked a 25 percent levy related to Russia on Indian goods.
It is important to note that this measure does not automatically impose a tariff on Indian goods, as the US House of Representatives has not yet considered this legislative initiative. After that, the bill may be sent to President Donald Trump for approval. Furthermore, it includes a provision allowing Trump to cancel sanctions if he deems it in the interest of US national security.
According to an analysis conducted by the Global Trade Research Initiative (GTRI) in New Delhi, in July Russia supplied about 52 percent of India's crude oil, which is higher than the 48.6 percent recorded in June. India's imports from Russia nearly doubled in July, reaching $8.91 billion compared to $4.84 billion the previous year.
Commerce Minister Rajesh Agrawal declined to comment on the risk of tariffs stemming from the American bill, but noted that the economies maintain regular contact and remain committed to the agreements reached in February. The parties issued a joint statement in February regarding the initially agreed trade deal, the terms of which are currently being reviewed after the US Supreme Court overturned mutual tariffs imposed by Trump.
Agrawal emphasized that 'the bill on Russian oil tariffs is a legislative process in the US that is proceeding as usual. I do not think I should comment on it. It is their internal process.' He added that they are interacting with the US regarding the trade deal, and contacts are regular, and both sides are committed to the February agreements.
Currently, Indian goods face an additional 10 percent tariff in the US under Section 301 of the US Trade Act of 1974. This additional tariff may also increase after the completion of the US investigation into India regarding alleged excess capacity under Section 301. The US Trade Representative's office has not even published a draft report on the investigation's findings.
According to the Commerce Minister, New Delhi has already participated in the process and provided its response. He stated that the Department of Commerce will have another opportunity to present its response after the draft report is released.
The Commerce Minister believes that the deal concluded between India and the US should resolve all future tariff issues. He believes that one of the key objectives of any deal is predictability in trade relations, and he expects this commitment to continue in this case.



