New Legislation Targets Countries Buying Russian Oil With Record Tariffs
Economic tensions between New Delhi and Washington have reached a critical point as US President Donald Trump gave the "green light" to a bipartisan Russia sanctions bill. The proposed law, spearheaded by Republican Senator Lindsey Graham and Democrat Richard Blumenthal, could impose a staggering 500 percent tariff on countries that continue to purchase Russian oil, gas, and other energy exports.
The Trump Russia Sanctions Bill, officially titled the "Sanctioning of Russia Act 2025," is designed to choke off the financial resources fueling the conflict in Ukraine. Senator Graham, who chairs the Senate Budget Committee, explicitly named India, China, and Brazil as primary targets. He noted that the legislation provides President Trump with "tremendous leverage" to force these nations to stop buying discounted Russian crude.
This development follows a series of aggressive trade measures. In August 2024, the US already imposed a 25 percent tariff on Indian goods, bringing total duties for some exports to 50 percent. While Indian Ambassador Vinay Mohan Kwatra recently met with US officials to seek relief—highlighting that New Delhi has already begun reducing its intake of Russian oil—the new bill suggests that pressure is only set to intensify.
Official data shows that India's imports from Russia dropped by 18 percent between April and October last year. Despite this shift, President Trump remains firm, stating that Prime Minister Narendra Modi is aware of Washington's dissatisfaction. Trump recently remarked that the US has the capability to raise tariffs "very quickly" if India does not further distance itself from Moscow’s energy sector.
With a bipartisan vote expected as early as next week, the India-US trade relations face a period of extreme uncertainty.16 Indian refiners, who have benefited from cheaper Russian fuel, may now be forced to pivot toward more expensive sources to avoid these crippling secondary sanctions.17 As both nations continue to negotiate a long-awaited trade deal, the shadow of the 500 percent tariff looms large over the future of bilateral commerce.
