Trump Backs 500 % US Tariff on India’s Russian Oil Trade

By Sulagna Halder

Washington DC:

Former US President Donald Trump has signalled strong support for a controversial Senate bill that could impose extraordinary tariffs on nations importing Russian energy, including India, as part of mounting pressure on Vladimir Putin to end the war in Ukraine.

According to the bill, known as the Sanctioning Russia Act of 2025, countries that continue purchasing oil, natural gas, uranium or petroleum products from Russia could face a punitive 500 % tariff on their exports to the United States.

Trump commented during a White House meeting:

“I’m looking. It’s totally my option. They pass it totally at my option, and to terminate totally at my option. And I’m looking at it very strongly”.

He emphasised that enforcement would remain at the president’s discretion.

The bill was introduced in April by Senator Lindsey Graham, who described it as a “big breakthrough” and an “economic bunker buster”, aiming to compel Putin to negotiate peace by targeting his main revenue streams. It currently has 84 Senate co-sponsors, including Democrats like Richard Blumenthal, indicating bipartisan support.

Graham explained:

“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.” 

The proposal includes a waiver provision granting the president temporary exemption powers, reportedly for up to 180 days, with room to extend under specific conditions.

India, as the world’s second largest buyer of Russian fossil fuels, importing over €4.2 billion worth in May alone, with 72 % constituting crude finds itself in direct jeopardy. The new measure arrives at a critical juncture: New Delhi is in intense negotiations with Washington for an interim trade pact aiming to resolve a 90 day tariff truce set to expire on 9 July.

Analysts warn that such punitive duties could severely destabilise India‑US relations, threatening key Indian exports in pharmaceuticals, textiles and IT services and undermining the broader bilateral trade agenda.

Supporters argue that secondary sanctions are essential to choking off Kremlin finances and may offer Trump improved leverage in any peace negotiations with Putin. Critics, however, caution these tariffs could backfire, souring global trade ties and inflating energy prices in the United States itself.

It is expected that the Sanctioning Russia Act of 2025 will reach the Senate floor in August. Only time will tell whether the bill becomes law and whether Trump will use his waiver power to soften its impact, especially on strategic partners such as India.