US Plans 500% Tariff on Russian Oil Buyers: India and China in the Crosshairs
US President Donald Trump supports a bill to impose a 500% tariff on nations trading with Russia, including India and China. Here's how this move could impact India's oil imports and exports.
US Plans 500% Tariff on Russian Oil Buyers: India and China in the Crosshairs
In a move that could reshape global trade dynamics, US President Donald Trump has backed a Senate bill that may impose a 500% tariff on goods imported from countries continuing to trade with Russia — most notably India and China.
🔴 What Did Trump Say?
Republican Senator Lindsey Graham confirmed that Trump endorsed the bill during a private golf game, reportedly telling Graham, “It’s time to move your bill.” Graham and Democratic Senator Richard Blumenthal co-sponsored the legislation, which currently has the backing of 84 US senators and is expected to be introduced in August 2025.
“If you’re buying products from Russia and not supporting Ukraine, your goods could face a 500% tariff when entering the US,” Graham told ABC News.
🛑 Why the Sanctions Now?
The proposed bill is seen as part of continued pressure on Russia amid its prolonged war in Ukraine, now entering its third year. The Trump administration, while cautious of disrupting peace efforts, has signaled it is open to using aggressive trade measures.
📉 How Will It Impact India?
India, which imported a significant volume of Russian oil in recent years, could be heavily affected. India-Russia bilateral trade reached an all-time high of $68.7 billion in FY 2024–25, compared to $10.1 billion pre-COVID.
India and Russia have set an ambitious goal of reaching $100 billion in trade by 2030, largely fueled by oil imports and defense cooperation. However, a 500% US tariff could:
Disrupt Indian exports to the US
Increase global oil prices
Force India to reassess its energy alliances
📦 What About China?
China, like India, is one of Russia’s top oil buyers and would also be subject to the same tariff penalty if the bill passes. Combined, India and China account for over 70% of Russia’s oil exports.
📜 Will It Become Law?
Though the bill enjoys strong bipartisan support, internal reports from The Wall Street Journal reveal that Trump’s team previously attempted to soften the bill’s language — replacing “shall” with “may” — making enforcement more flexible. However, with Trump now backing the bill publicly, its momentum has significantly increased.
