500% tariff on India? Trump okays Russia sanctions Bill

In a move that could have significant trade and diplomatic implications for India, US President Donald Trump has approved a bipartisan sanctions Bill aimed at penalising countries that continue to buy Russian oil, with proposed tariffs of up to 500 per cent.

The development was announced by Republican Senator Lindsey Graham, who said the Bill -- co-authored with Democratic Senator Richard Blumenthal -- had been “greenlit” by the President following a “very productive meeting” at the White House.

“This Bill will allow President Trump to punish those countries who buy cheap Russian oil fuelling Putin’s war machine,” Graham said in a post on X.

He added that the legislation would give Trump tremendous leverage over countries such as China, India and Brazil to incentivise them to stop buying discounted Russian oil, which he said was funding Putin’s “bloodbath against Ukraine”.

The legislation, titled the Russia Sanctions Enforcement and Accountability Act, is expected to be tabled for a vote in the US Senate as early as next week. It seeks to impose sweeping financial and trade penalties on countries and entities that undermine the price cap on Russian crude -- a measure intended to limit Moscow’s oil revenues amid the Ukraine war.

According to US media reports, the Bill could grant the US administration broad authority to impose tariffs of up to 500 per cent on imports from non-compliant nations, potentially impacting trade flows with major economies that have continued energy ties with Russia.

India has emerged as one of the largest buyers of Russian crude since Western sanctions were imposed on Moscow in 2022, taking advantage of discounted prices while maintaining that its energy imports are driven by national interests and global market conditions. New Delhi has consistently rejected linking its oil purchases to geopolitical considerations, arguing that energy security for its population remains paramount.

Observers say the move signals Washington’s intent to tighten economic pressure on Moscow while also testing the diplomatic balance of emerging powers such as India, which have sought to maintain neutrality in the Ukraine conflict.

Graham said he hoped for “a strong bipartisan vote” on the Bill, framing it as part of a broader effort to “punish Putin and protect America’s interests”.

A few days earlier, Trump had backed remarks by Graham, who argued that the threat of tariffs had proved an effective tool in pushing countries to reduce their economic engagement with Russia amid the war. Graham claimed the US had imposed sanctions on Russia’s two largest oil companies and slapped a 25 per cent tariff on India over its purchase of Russian crude, describing the measures as the biggest pressure exerted on Moscow since the conflict began. “If you want to end this conflict and put pressure on Putin’s customers, this is how you do it,” Graham said.