Trump Backs Bill to Impose 500% Tariffs on Russian Oil Buyers

US President Donald Trump has backed a Senate bill proposing punitive tariffs of up to 500% on countries that continue economic engagement with Russia, particularly through oil imports, Senator Lindsey Graham said in a statement today.

The bill titled “Sanctioning Russia Act” aims to choke Moscow’s revenues by targeting third-party buyers rather than Russia alone.
For India, the implications are potentially far-reaching. Since the Ukraine war began, Russia has emerged as one of India’s largest crude oil suppliers, offering discounted barrels that have helped cushion domestic fuel prices and manage inflation.

Senator Lindsey Graham, the bill’s sponsor, has explicitly named India and China as key enablers of Russia’s war economy, noting that the two countries together account for about 70% of Russian oil exports. Under the proposed law, goods from such countries could face steep tariffs when entering the US market.

India’s exposure to the US market is substantial. The US is among India’s largest export destinations, with strong trade links in pharmaceuticals, information technology services, textiles, engineering goods and speciality chemicals. A blanket or sector-wide tariff shock, even if selectively applied, could undermine India’s export growth at a time when it is trying to position itself as a trusted alternative to China in global supply chains. Pharmaceuticals and IT services, in particular, rely on predictable access to the US market and could face indirect pressure if trade relations sour.

There is also uncertainty around how aggressively the law would be enforced. The bill initially faced resistance within the Trump camp, with the White House reportedly pushing to make enforcement discretionary rather than mandatory. Recent revisions include carve-outs for countries supporting Ukraine, suggesting flexibility remains built into the framework. Trump’s endorsement appears to be as much about creating leverage as about immediate enforcement, consistent with his past approach of using tariffs as bargaining tools.

While the legislation signals a tougher US stance on Russia, for India it represents a new test: how to protect energy security and export interests without fracturing a crucial relationship with Washington.