Concerns over US’ 500% tariff Bill flagged: EAM

In the backdrop of a controversial Bill in the US Senate which, if passed, threatens to derail the ongoing India-US trade negotiations, External Affairs Minister S Jaishankar has said New Delhi’s concerns have been shared with US Senator Lindsey Graham over his Bill proposing a 500 per cent tariff on nations buying oil from Russia.

Replying to a query during a media interaction in Washington DC on Wednesday, Jaishankar said, “We have been in touch with Senator Graham. The Embassy and the Ambassador have been in touch. Our concerns and our interests on energy, security have been conveyed to him.”

“We’ll then have to cross that bridge when we come to it, if we come to it,” said the minister, hinting at a wait-and-watch approach.

On how India sees this, the minister said, “Any development which is happening in the US Congress is of interest to us if it impacts our interest or can impact our interest.”

A legislation proposed by Graham calls for imposing 500 per cent tariff — largely on India and China — for buying oil, gas and uranium from Russia if Moscow refuses to participate in peace negotiations with Ukraine.

It aims to pressure Russia economically and force negotiations over the Ukraine war. India and China account for almost 70 per cent of Russia’s oil exports.

India, citing its national interests, increased Russian oil imports significantly since 2022 due to steep discounts.

The Bill has over 80 co-sponsors in the US Senate, making it politically significant. However, US President Donald Trump will have the discretion to enforce or waive the tariffs if the Bill passes through the legislative process in the US.

The Bill, if approved by the US, could impact the ongoing bilateral trade agreement that India and the US are negotiating. As a result, key Indian exports to the US, including those pertaining to pharmaceuticals, textiles and IT services, could get affected.

While India is seeking greater market access for its labour-intensive goods, the US wants duty concessions for its agricultural products. The Indian team, headed by Special Secretary in the Department of Commerce Rajesh Agrawal, is in Washington for negotiations.