Import of Russian Oil: Trump to Impose 500% Tariff on India and China? Key Details of New US Bill

The Sanctioning Russia Act of 2025, recently endorsed by former US President Donald Trump, proposes sweeping tariffs targeting nations like India and China over continued energy trade with Russia, as per news reports. 

If enforced, the bill could strain major international trade relationships by mandating up to 500% tariffs on specific imports. 

New US Legislation Targets Countries Buying Russian Oil 

Introduced by US Senators Lindsey Graham and Richard Blumenthal, the Sanctioning Russia Act of 2025 seeks to pressure nations engaged in energy trade with Russia.  

The bill specifically targets countries such as India, China, and Brazil for sourcing Russian petroleum and uranium post the Ukraine conflict.  

Under this legislation, the US President would be legally required to impose tariffs of not less than 500% on goods and services originating from those nations. 

Impact on India’s Trade Landscape 

India has been among the world's top buyers of Russian crude oil since the Ukraine war began, benefiting from lower prices amid Western sanctions.  

The Indian government maintains that these imports are essential to meeting its national energy needs.  

However, this bill places India directly in the crosshairs of potential US trade restrictions that could significantly increase product costs for exporters to the American market. 

Trump’s Approval and Strategic Leverage 

On January 8, 2026, Senator Lindsey Graham confirmed via X (formerly Twitter) that Donald Trump endorsed the bill following in-depth discussions.  

Graham stated that the proposed legislation provides Trump with “tremendous leverage” over nations like India engaged in Russian trade, especially in energy.  

The move aligns with broader US efforts to restrict Russia’s revenue streams amid ongoing geopolitical tensions. 

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Conditions for Enacting the Tariffs 

The bill outlines that the 500% tariff would be automatically triggered if Russia or affiliated actors refuse peace negotiations with Ukraine or if a violation of such a peace deal occurs.  

The provisions also cover scenarios where Russia engages in new military action or attempts to destabilise Ukraine’s government.  

In such cases, countries continuing energy trade with Russia would be penalised through higher US import tariffs. 

Conclusion 

The Sanctioning Russia Act of 2025, backed by Trump, establishes a framework for punitive tariffs on countries like India and China tied to ongoing Russian trade. It marks a significant move in the US's foreign policy approach to deter Russian economic support through indirect global trade. 

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