Republican Senator Rand Paul and US President Donald Trump (Img: Pinterest)
Washington: The suggestion to put tariffs of as much as 100 percent on imports from India and China is a subject of political discussion in the US, especially after Republican Senator Rand Paul's opposition to the move.
In fact, Senator Paul viewed the introduction of tariffs as “shooting ourselves in the foot”, as the move could hike prices for Americans and hurt the ties between the US and its major trading partners, including India.
As Senator Paul pointed out, implementing such duties on imported products would affect businesses and Americans themselves, rather than just foreign producers.
While addressing the legislation concerning sanctions on Russia, Rand Paul criticized the proposal to grant the executive greater authority to impose tariffs.
According to him, tariffs end up being paid by US importers who in turn make their consumers pay extra by increasing the price of products and services. This could increase the financial burden on Americans facing high living costs.
US Senator Ron Wyden is another Senator raising concerns regarding the provision on tariffs in the legislation.
Tariff Authority Bill is a piece of the sanctions against Russia bill that has been approved by the US Senate. This bill provides the ability of the US President to charge more tariffs to nations that still buy Russian energy.
India and China are some of the top consumers of Russian energy. As such, these nations may be charged tariffs as high as 100 percent if the bill passes into law.
The US Senate has approved the bill with an overwhelming majority. The bill was voted for 86 to 11, however, it is yet to pass through the US House of Representatives.
The latest development comes after previous tariff tensions between Washington and New Delhi. Former US President Donald Trump had earlier imposed a 25 per cent tariff on Indian goods over India’s purchase of Russian energy, though the move was later rolled back during trade negotiations.
The proposed tariff plan has now raised concerns over its potential impact on global trade, US inflation and diplomatic ties with strategic partners like India.
