Trump Signals Possible 500% Tariff, Takes Another Tough Stand Against India

The United States has approved a bill related to sanctions against Russia. Read the full story to know about bill.

US President Donald Trump has created difficulties for India and China. The United States has approved a bill related to sanctions against Russia. According to this, there is a provision to impose tariffs of up to 500% on countries buying oil from Russia. It is noteworthy that after US President Donald Trump gave his nod to this bill, India and China have come directly under Washington's crosshairs.

What did Senator Graham say?

Republican Senator Lindsey Graham said that he met President Trump at the White House on Wednesday, where Trump approved the long-pending Russia sanctions bill. According to Graham, this bill could come up for voting in the Senate as early as next week, although uncertainty remains about its passage.

Graham said in a statement, "This is a timely move. Ukraine is making concessions for peace, while Putin is just talking and continuing to kill innocent people."

What is the ‘Sanctioning Russia Act of 2025’?

This bill has been introduced under the leadership of Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal. It provides that if Russia refuses peace talks with Ukraine, violates an agreement, launches a new attack, or attempts to destabilise the Ukrainian government, the US will take strict action.

What does the bill say?

• Visa ban and asset freeze on the Russian President, top military officials, and those supplying weapons to Russia.
• A minimum tariff of 500% on all goods and services coming from Russia to the US.
• Up to 500% duty on products from countries trading Russian oil, gas, and uranium.
• Sanctions on Russian state banks and foreign financial institutions transacting with them.
• Ban on the export of energy and energy-related products from the US to Russia.

Why is this bill important for India?

After the Ukraine war, India has rapidly increased its purchase of discounted Russian crude oil. At one point, Russia became India's largest oil supplier, and its share in India's total crude oil imports reached 35-40%, compared to just 0.2% before the war.

Donald Trump has consistently criticised India's Russian oil imports. In August, his administration imposed an additional 25% tariff on Indian products, bringing the total US tariff to 50% — one of the highest on any major trading partner.

India maintains that Russian oil imports are necessary for energy security and to control prices in the domestic market. New Delhi has clarified that this decision has been taken based on national interests.

Impact on India-US Relations

If the US implements secondary sanctions under this bill, Indian exporters could be significantly impacted. There is a fear of tariffs of up to 500% on Indian exports to the US, which could affect sectors like pharmaceuticals, IT, and textiles.

Experts believe this could further strain India-US relations. While relations have strengthened in defence, strategic partnerships, and trade in recent years, trade disputes, immigration restrictions, and geopolitical tensions in 2025 have challenged these ties.