US sanctions bill against Russia under threat due to expansion of Trump's tariff powers - Reuters
Kyiv • UNN
The sanctions bill against Russia, backed by the late Senator Graham, could grant Trump tariff powers, raising concerns among Democrats and Republicans. It faces challenges in the House of Representatives, where some lawmakers want to postpone it until the elections.
In the United States, a bill on sanctions against Russia, which was supported by the late Senator Lindsey Graham, will face a tough test in Congress, as Democrats and some Republicans express concern over new trade powers the law would grant U.S. President Donald Trump, Reuters reports, writes UNN.
Details
Many Democrats, some Republicans, and trade organizations are unhappy with a provision in the long-stalled bill that would allow Trump to impose high tariffs on countries that buy large volumes of Russian oil and gas, or on countries his administration deems to be facilitating sanctions evasion. The bill provides for imposing sanctions against Russian officials and authorizing 100% tariffs on the five largest importers of Russian oil or gas, or on the five leading countries that help Moscow evade U.S. sanctions and continue to fund its war against Ukraine, now in its fifth year.
These countries are not named in the bill, but likely include China, India, and possibly some European countries and Japan, the publication writes.
The bill has only gained Trump's support in recent weeks.
The tariff provision became more important to the White House after the U.S. Supreme Court in February struck down Trump's "reciprocal" tariffs of 10% to 50% imposed last year, forcing the administration to rush to find new authority, the publication notes.
The sanctions bill would also allow the U.S. president to lift sanctions against Russia for unspecified national security reasons, a provision opposed by pro-Ukraine Democrats, given Trump's shifting views on Russia and Ukraine, the publication notes.
The bill would also extend for five years energy and arms sanctions against Iran, first imposed in 1996 and expiring this year, which was added as a condition for Trump's support. This week, Trump demanded that the bill also include tariffs on Iran, although trade between the U.S. and Iran is virtually zero.
With polls showing Democrats could win control of the House and possibly the Senate in November's congressional elections, some lawmakers say they would prefer to wait to pass sanctions against Russia until Democrats have more power over what many see as unprecedented legislation.
The bill advanced with overwhelming bipartisan support in procedural votes in the U.S. Senate on Tuesday and Wednesday, with lawmakers calling it a tribute to Graham.
Congressional aides said it could well pass the Senate before senators leave for their districts next week.
But the bill, renamed in honor of Graham, faces greater challenges in the House, which is on recess until August 31, the publication writes.
"Some senior Democrats have already come out against the sanctions bill," the publication states.
The legislation, it is noted, also raises concerns among some Republicans.
Senator Rand Paul, the only Republican to vote against the bill on Tuesday, said he would propose an amendment to limit the tariffs Trump could impose, and others may follow suit.
Ukraine's Ambassador to the United States, Olha Stefanishyna, said on Thursday that Ukraine needs swift action before winter sets in.
"You know very well that tariffs at this point are a partisan issue, so we hope this does not distract everyone from the true intent of the law," she said at an event organized by the Christian Science Monitor.
Apart from concerns that the bill could increase inflation within the country, sanctions and customs experts argue that it will give U.S. presidents a new ability to influence countries through secondary tariffs, rather than merely imposing sanctions on individuals and organizations found guilty of facilitating sanctions evasion. The bill provides for the termination of these powers after five years, but experts note that governments rarely relinquish previously acquired powers.
Expanded tariff powers could upend functioning multilateral cooperation, including the coalition of over 40 countries led by the U.S. that imposed sanctions on Russia after its full-scale invasion of Ukraine, said one Western diplomat.
Supporters of the bill argue that the sunset clause narrows the tariff language enough to hit Russian energy revenues without negative consequences.
Jess Goversen, a former senior U.S. government official and now chief economist at the developer platform bank Column, said the bill, if passed, would create a kind of sledgehammer that could be aimed at all bilateral economic relations.
"Secondary tariffs, as provided for in this bill, would function as a much harsher tool that could apply across-the-board tariffs to all goods from a country based on its energy trade with Russia or its role in sanctions evasion," Goversen said.