Is Trump bringing 500% tariffs on India? Read about the new bill the US is set to pass that targets countries buying Russian oil
In a move to target Russia, the United States is set to pass a law that seeks to impose heavy taxes on countries maintaining commercial relations with Russia. US President Donald Trump reportedly has given his go-ahead to a Senate bill that envisages levying 500% tariffs on countries that buy oil and other products from Russia, which include India and China. Republican Senator Lindsey Graham, who is a sponsor of the bill, confirmed that the proposed bill has the support of Trump, who wanted the bill to be brought forward for a vote.
The proposed bill, formally introduced in March, has found huge support with 84 co-sponsors, making it the most widely supported bill since the Russia-Ukraine war. Speaking about the bill, Graham said that it is part of Trump’s efforts to get Russia to negotiate on Ukraine.
“Big breakthrough here. So, what does this bill do? If you’re buying products from Russia and you’re not helping Ukraine, then there’s a 500% tariff on your products coming into the United States. India and China buy 70% of Putin’s oil. They keep his war machine going,” Graham was quoted as saying by ABC News. He added that it is up to Trump whether he chooses to waive it or sign it into a law after it is passed by Congress.
“My bill has 84 co-sponsors. It would allow the president to put tariffs on China, India, and other countries to stop them from supporting Vladimir Putin’s war machine and get him to the table. For the first time yesterday, the president told me … I was playing golf with him. He says, ‘It’s time to move your bill,” he added.
If signed by the US President, the bill will levy heavy duties on the products of countries buying oil, gas, uranium, petrochemicals or related commodities from Russia and not assisting Ukraine. According to Graham, the proposed legislation aims to target Russia’s economic capabilities in order to compel it to agree to negotiations.
How the Bill would affect India
India is the third largest importer and consumer of oil in the world and fulfils around 88% of its crude oil demand through imports. In the aftermath of the Russia-Ukraine conflict, that started in February 2022, India has been buying oil from Russia, as the latter has been offering crude oil at cheaper rates. Until now, India has been dependent on the Middle East for its crude oil supply. However, after the Russia-Ukraine conflict, Indian refiners have been able to import crude oil from Russia at discounted rates.
Of late, India’s crude oil imports from Russia have outgrown those from its West Asian suppliers. As of May 2025, India imported around 1.96 million barrels per day (bpd) crude oil from Russian, which was estimated to reach around 2–2.2 million bpd, by June 2025, the maximum in two years. Considering the conflict in the Middle East, India has gradually diversified its oil supplies, to reduce the impact of market instability due to regional conflicts.
As a consequence of India importing Russian oil, the India-Russian bilateral trade reached an unprecedented $68.7 billion during FY 2024–25 from $10.1 billion before COVID pandemic. The two countries have set the target of trouching the $100 billion mark in total trade volume by 2030.
On the other hand, the US is one of the largest trading partners of India. If the proposed bill becomes a law, it will impact Indian exports to the US, which include products from pharmaceutical and textile sectors, automotive components and IT services. However, India is in the process of signing a trade deal with the US, which might bring down the proposed US tariffs on India.
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