Trump Greenlights ‘Russia Sanctions Bill’ | More Tariff Trouble For India?
I was honored yesterday evening to participate in a very Indian panel discussion which opens with Indian advertising that you will certainly not find on BBC, CNN or other global broadcasters. As for the discussion itself, note that I appear to be the only non-Indian expert.
The topic was one of great concern to the Indian government and business community, namely the bill presently before the U.S. Senate granting the President the powers to impose secondary tariffs of up to 500% on countries which continue to buy Russian oil. This bill enjoys bipartisan support and is sponsored by the viciously anti-Russian Republican Senator Lindsey Graham of South Carolina and his Democratic peer and fellow Russia-hater Senator Richard Blumenthal from Connecticut. I add parenthetically that I take special interest in these sponsors because Blumenthal just happens to be a classmate of mine from Harvard College, 1967.
We each had just a few minutes to make present our evaluations of the likely fall-out from the 500% tariffs when the bill comes into law, as it inevitably will given that 82 of the Senators have previously expressed their support, making it veto-proof. The subject became news when President Trump came out yesterday saying he will sign the bill, which is a concession to the realities of politics on The Hill.
You will see that all the Indian experts were figuring the angles for India and for the USA coming out of the new tariffs: how this would add greatly to inflation for American consumers on the one hand and how it would harm Indian exports in areas until now not affected by Trump’s tariffs like pharmaceuticals. Regrettably, I limited my remarks to how the new tariffs would founder on the rocks of Chinese opposition. After all, Trump’s early attempts to impose 150% tariffs on China months ago fell through when the Chinese struck back and said they would freeze all sales of rare earth metals to the USA, in effect bringing US industrial production, especially in electronics and military hardware to an abrupt halt. Trump backed down and the imposition of high tariffs on China so far is in a suspended state, which is where it will likely remain to the end of Trump’s term in office.
Regrettably, what I did not broach is the question of how such tariffs would affect Russia and change dramatically how the war in Ukraine is being conducted.
If indeed, Washington succeeds in forcing Russia’s major export markets to stop buying Russian oil and does great harm to Russia’s economy, we will not have to wait to see this damage impair the war effort. On the contrary, we may anticipate that Russia will proceed to do in Ukraine what some argue it should have done a couple of years ago, namely to smash Kiev and Lvov to bits, putting a dramatic end to the statehood of Ukraine and ending the war here and now. I can add based on today’s latest news, which I discussed with News X World this morning, that the message of such an escalatory path has just been given by Moscow to Kiev, London, Paris, Berlin and Washington by the use of an Oreshnik hypersonic missile in a midnight attack on Kiev. I await further news on this very important development to see what destruction actually resulted from the Oreshnik attack, which is only the second use of this missile in the Ukrainian campaign after an initial experimental strike on a hardened underground military production site in Dnipro in 2024.
Gilbert Doctorow 