US President Trump has approved a bill to impose 500% tariff on countries buying oil from Russia. It mainly targets India, China and Brazil. Its objective is to stop the financial help Russia is getting for the war.
Washington: US President Donald Trump has given the green signal to a new sanctions bill imposing 500 percent tariffs on countries that buy oil from Russia. This new import tariff bill of the Trump administration mainly targets India, China and Brazil. This bill has been introduced in the US Congress with the purpose of stopping the financial assistance Russia is getting for war preparations. Voting on this bill will soon take place in the US Congress. If this new bill is passed by the US Congress, it will be a big challenge for India, China and Brazil. It is also becoming clear that this heavy tax will be applicable not only on oil but also on those buying Russian uranium.
500 percent tax
This new bill gives the right to take tough economic measures against countries that import Russian oil. The bill proposes to impose a tax of up to 500 percent on imports from countries that continue to buy crude oil from Russia. The Trump administration says this is part of further tightening of US sanctions imposed on Russia after the attack on Ukraine. China, India and Brazil are the largest buyers of Russian oil. In this matter, China is at first place and India is at second place. This new sanctions bill, which comes with the announcement of stopping economic aid to Putin’s war machine, will be a big blow to China and India. Trump’s tariff war has already had a significant impact on America’s relations with India. Last year also the Trump administration had increased taxes on Indian products. Due to the imposition of an additional 25 percent tax as a penalty for purchasing Russian oil, the total tax on some Indian products had increased by almost 50 percent.
Russia’s biggest trading partner China is also facing a large-scale tax war with the US. When America imposed 145 percent tax on Chinese products, China retaliated by imposing 125 percent tax on American products. It is believed that the implementation of this new bill will have major economic consequences in the global market.