US President Donald Trump has cleared a sweeping sanctions proposal that could expose countries such as India, China, and Brazil to tariffs of up to 500% for continuing to purchase Russian oilโraising fresh concerns over global trade disruptions and IndiaโUS relations.
What Is the New Bill?
The proposed legislation, titled the Sanctioning Russia Act of 2025, authorises the US President to impose punitive duties on countries that โknowingly engageโ in buying Russian-origin petroleum and uranium products. The bill aims to choke off revenue streams funding Russiaโs war in Ukraine by targeting major buyers of discounted Russian crude.
Why India Is in Focus
Since the Ukraine conflict began, India has emerged as one of the largest importers of Russian oil, citing energy security and affordability. Under the bill, if enacted, India could face tariffs of at least 500% on all goods and services exported to the United States if Washington determines that Russia is refusing to negotiate peace or violates any future agreement.
How the Tariffs Would Be Triggered
According to the billโs sponsorsโUS Senators Lindsey Graham and Richard Blumenthalโthe sanctions would kick in if:
- Russia refuses to negotiate a peace settlement with Ukraine
- A peace agreement is violated
- Moscow launches new military offensives
- Russia attempts to destabilise Ukraineโs government
In such cases, the US President would be mandated to impose tariffs of no less than 500% on imports from countries continuing trade in Russian oil or uranium.
Trumpโs Nod and Strategic Leverage
Confirming Trumpโs approval, Senator Graham said the former president had โgreenlitโ the bipartisan bill after extensive discussions. He argued the legislation would give Trump โtremendous leverageโ over countries like India that have increased Russian oil purchases amid Western sanctions.
Impact on IndiaโUS Relations
The move comes at a sensitive moment for New DelhiโWashington ties. India has consistently maintained that its oil purchases are driven by national interest, market dynamics, and consumer affordabilityโnot geopolitics. However, a 500% tariff threat could:
- Severely disrupt IndiaโUS trade
- Raise costs for Indian exporters
- Force difficult energy and diplomatic recalibrations
What Happens Next?
The bill still needs to pass through the US legislative process before becoming law. If enacted, its implementation would depend on presidential determinations tied to developments in the Ukraine conflict.
For now, the proposal signals a tougher US stance on secondary sanctionsโand places India at the centre of a growing global debate over energy security, strategic autonomy, and great-power pressure.
