America will impose 500 percent tax on countries buying oil from Russia, why is it a warning bell for India?

News Topical, Digital Desk : America has taken a tough stand on countries doing business with Russia. Even three years after Russia's war against Ukraine, some countries, especially India and China, are still buying oil from Russia.

After this, US Senator Lindsey Graham has introduced a bill. It talks about imposing 500 percent tariff on countries doing business with Russia.

This bill has the support of President Donald Trump himself. This news has rung alarm bells for countries like India, which are buying cheap oil from Russia. Let us know what this bill is and what impact it can have on India.

Speaking to ABC News on Sunday, Graham said that Trump has given the green signal to bring this bill for vote after the July holidays. This bill is a weapon to weaken Russia's war machinery and bring President Vladimir Putin to the negotiating table on the Ukraine issue.

What's in the bill?

This bill talks about imposing heavy tariffs on countries buying oil and other goods from Russia, especially India and China. Senator Graham says that India and China buy 70 percent of Russia's oil. Through this bill, America wants to put pressure on these countries so that they stop trading with Russia.

Graham also clarified that Trump will have the right to veto the bill, meaning he can decide whether to implement it or not. This bill has the support of 84 senators.

Graham said, "We are giving Trump a weapon that he does not have right now." This bill was introduced in March, but it was postponed due to objections from the White House and efforts to improve Trump-Putin relations. Now it seems that the Trump administration is ready to support this bill.

Why is there alarm bells for India? 

At the beginning of the Russia-Ukraine war, the US and European countries had imposed a trade ban on Russia. Along with this, the global trade payment gateway SWIFT was also banned for Russia. This made it difficult for Russia to trade with anyone else. Then India started buying oil from Russia at cheaper rates. For this, both the countries traded using the rupee-ruble system instead of the dollar. 

As a result, Russia's share in India's total oil imports rose from 1 percent to 40-44 percent. In June, India planned to import 2-2.2 million barrels of oil per day from Russia, the highest in the last two years.

If this bill is passed and a 500 percent tariff is imposed, then goods imported from India to the US will be heavily taxed. However, a trade agreement is in the process between India and the US, which may reduce the tariffs. Still, this bill may have a major impact on India's exports.

What is Russia's reaction to the bill?

Russia has reacted sharply to this bill. Kremlin spokesman Dmitry Peskov said that Senator Graham's anti-Russia thinking is well known. He said, "Graham is the flag bearer of Russophobia (anti-Russia). If he had his way, these sanctions would have been imposed long ago."

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