In a significant development with major implications for global trade, former US President Donald Trump has endorsed a bipartisan bill that could lead to punitive tariffs of up to 500% on goods imported from India. The move is part of a legislative push to economically cripple Russia by targeting nations that continue to trade with it.
What is the Sanctioning Russia Act of 2025?
The proposed legislation, known as the Sanctioning Russia Act of 2025, was introduced by Senators Lindsey Graham and Richard Blumenthal. Its primary objective is to cut off funding for Russia's war in Ukraine by imposing severe secondary sanctions and tariffs on countries purchasing key Russian exports like oil, gas, and uranium.
The bill explicitly mandates that the US President must increase the duty on all Russian goods and services to at least 500%. Crucially, it extends this provision to any country that "knowingly engages" in the exchange of Russian-origin petroleum products or uranium, directly putting major importers like India and China in the crosshairs.
Trump's Endorsement and Graham's Rationale
Senator Lindsey Graham announced on social media platform X that, after a productive meeting, Donald Trump had "greenlit" the bipartisan bill. Graham argued that the legislation would provide the White House with "tremendous leverage" against nations such as China, India, and Brazil to compel them to stop buying Russian oil.
In a joint statement last year, Graham and Blumenthal described tariffs on these countries as the "ultimate hammer" to end the war, accusing them of propping up "Putin’s war machine" by purchasing cheap Russian energy. The bill does include a waiver provision, allowing the President to suspend the 500% tariffs for up to 180 days if deemed in the US national interest.
Potential Impact on India and Bilateral Relations
For India, the stakes are particularly high. New Delhi has been a major buyer of discounted Russian crude oil since the Ukraine conflict began. It is already subject to an additional 25% US tariff on certain exports, imposed in August 2025, bringing the total duty on many items to 50%.
A tenfold increase to 500% would be a devastating blow for Indian exporters across various sectors, many of which are already experiencing a slowdown. Furthermore, this development threatens to become a significant hurdle in the ongoing negotiations for a comprehensive India-US trade deal.
The tension over tariffs is not new. Donald Trump had previously remarked that Prime Minister Narendra Modi was "unhappy" about US tariffs on India, noting that the US could "raise tariffs on them very quickly" and that it "would be very bad for them." The passage of this sanctions bill could bring that warning to fruition in an extreme form, testing the resilience of the strategic partnership between the two democracies.
