United States senators are preparing to hand Trump what they’re describing as a “sledgehammer” that would break Russian President Vladimir Putin’s war economy.
This so-called sledgehammer bill, as per reports, can have potentially devastating economic ramifications on India and other nations. What is this ‘sledgehammer’, and why would it affect India? Here’s all you need to know.
Trump’s new ‘sledgehammer’ against Russia
In the US, bipartisan momentum is building in the US Senate for sweeping new sanctions, with reports suggesting that senators were on the path to arming Trump with a “sledgehammer” bill to use against Moscow. The bill would arm the President of the United States, Donald Trump, with sweeping authority to hit Russia.
This bill has bipartisan support, which means it has backing from both Trump’s Republican Party and the opposition Democratic Party. Republican Senator Lindsey Graham, who introduced the bill alongside Democrat Richard Blumenthal, said it would serve as a “sledgehammer” to break Putin’s war economy. It would allow Trump “to go after Putin’s economy and all those countries who prop up the Putin war machine,” Graham told CBS News.
How will a bill against Russia affect India?
The bill, as mentioned earlier, would give the POTUS sweeping powers to hit Putin’s Russia with harsh economic penalties. However, it could also lead to the US imposing up to a 500 per cent tariff on India. How?
In addition to sanctioning power against Moscow, it would allow Trump to impose equally harsh financial penalties and sanctions on any nation the US deems to be helping Russia’s “war machine”. This includes nations that purchase from Russia. Speaking to CBS News, Republican Senator Lindsey Graham said that “this congressional package… would give President Trump the ability to impose 500% tariffs on any country that helps Russia”. This includes economies that purchase Russian goods, like India, and nations like China or Brazil. India imports precious stones and metals, discounted crude oil, coal, and fertilisers from Russia.
Will Trump use the bill to sanction India?
While Trump has not specifically mentioned whether he would penalise India for trading with Russia, he appeared to back the bill. In a conversation with NBC, Trump said, “It’s a bill that the Senate is passing that very respectfully lets the president do whatever he wants, as you know,” he said, adding, “In other words, it’s at my option if I want to use it. They’re going to pass a very major and very biting sanctions bill, but it’s up to the president as to whether or not he wants to exercise it.”