The Bill titled ‘The Sanctioning Russia Act of 2025’, once enacted, will enable the US administration to impose steep tariffs and secondary sanctions on countries buying Russian oil, gas, and uranium, etc.
- The US President retains the power to waive these tariffs for up to 180 days if it is deemed in the U.S. national security interest.
Potential Implications for India
- Trade Halting: such high tariffs on goods and potentially services could effectively halt India’s $120 billion annual exports to the United States.
- Sectoral Damage: Labour-intensive sectors such as textiles, footwear and marine products, already burdened by US tariffs of up to 50%, could face further erosion of competitiveness and export viability.
- Weakened Bargaining Power: Can negatively affect future trade pacts negotiations with various entities, including the European Union, the Gulf Cooperation Council etc.
- Other: Dent on India- US relations, effect on economic growth, etc.
Way Ahead for India
- Diversifying Exports: Diversify goods exports away from the US to reduce vulnerability to unilateral tariff hikes.
- Export Promotion Mission: Increase outlay to strengthen India’s export ecosystem impacted by tariff escalations.
- Accelerating Trade Deals such as India-EU FTA negotiations.
- Simplified regulatory processes and rationalised duties on critical raw materials like cotton, leather, and gem inputs.
