Russia sanctions bill in US faces 3 key hurdles

Secretary of State Marco Rubio listens as President Donald Trump speaks during a roundtable on the American mining industry on Friday at the State Department in Washington. (AP)

The Russia sanctions bill passed by the US Senate on Friday, which authorises tariffs of up to 100% on India, China and three other countries for buying Russian energy, faces three separate obstacles before it can reach President Donald Trump for signature — the US House of Representatives is in recess until August 31, a possible September vote could collide with a Trump-Xi Jinping summit, and a coalition of House Democrats and at least one senior Republican are working to strip the tariff provisions altogether.

Secretary of State Marco Rubio listens as President Donald Trump speaks during a roundtable on the American mining industry on Friday at the State Department in Washington. (AP)
Secretary of State Marco Rubio listens as President Donald Trump speaks during a roundtable on the American mining industry on Friday at the State Department in Washington. (AP)

The House timing alone leaves a narrow window. Members return from summer recess on August 31, break again through most of October and early November as they return to their districts to fight midterm elections on November 3, and reconvene only in the weeks after. That pushes the earliest possible vote to September and the latest realistic one to late November.

September itself is complicated by China. People aware of the matter said the White House would likely prefer to keep the atmosphere around the bilateral relationship calm ahead of the anticipated Trump-Xi summit, which is currently expected on September 24.

“What we’re hearing is that Washington will want to keep the general atmosphere around the US-China relationship stable and positive ahead of the anticipated Trump-Xi summit on September 24,” said one of the persons cited above. “The White House may want to avoid having the legislation — which also threatens tariffs on China — coming to the House for a vote ahead of the summit.”

The bill has drawn sharp opposition from senior House Democrats, who argue that its structure hands the president wider tariff authority than the Ukraine question warrants. Gregory Meeks, the ranking Democrat on the House Foreign Affairs Committee, and Don Beyer, another Democratic member, said in a joint statement that the bill in its current form is “unacceptable” and would allow Trump to “dodge holding Russia accountable and impose yet more tariffs in his destructive trade wars”.

“Though the Paul-Wyden amendment to strike the dangerous tariff authorities failed, the vote total demonstrates that continued refinement of the Sanctioning Russia Act is imperative before it can be sent to the president’s desk,” their statement said. “We will continue to seek a path forward that remedies this bill’s flaws, and we remain ready to negotiate expeditiously with Congressional colleagues to achieve our common objectives. But the current text is unacceptable.”

The Paul-Wyden amendment, brought jointly by Republican Rand Paul of Kentucky and Democrat Ron Wyden of Oregon, would have stripped the tariff provisions from the bill while retaining other sanctions. It failed. But 32 senators voted in favour, including Paul crossing from his own party — a coalition already large enough to force reconciliation if the House amends the bill along similar lines. Any amended House text would have to return to the Senate for identical passage before it could reach Trump.

For India, the vote comes as it and the US work to conclude an interim trade agreement. If the House passes the bill unchanged, the administration acquires a fresh tariff lever over New Delhi, distinct from the leverage already on the table.

“It’s a real threat. It might not be prudent for this trade deal to remain unsettled. The EU and a number of other countries have settled their trade deals,” said another person aware of India-US trade deliberations. “But some things are still politically untenable, like India’s neighbours having lower rates.”

The February 7 framework between New Delhi and Washington envisaged bringing the effective tariff on Indian exports to 18% from around 50% — a total that had included a 25% penalty tied to India’s purchases of Russian oil. The Russia bill would not reintroduce that penalty; it would add a new tariff layer on the same conduct, on a different legislative basis, and one the interim agreement cannot dispose of.

The bill compels the executive to act against the five named purchasers — India, China, Slovakia, Hungary and Azerbaijan — with the actual rate to be set by the office of the US Trade Representative below the 100% ceiling. A presidential waiver on certified national interest grounds is available and would trigger 180-day reassessments before Congress.

Officials in New Delhi did not respond to requests for a comment.

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