US President Donald Trump has “greenlit” a sweeping bipartisan Russia sanctions bill that could dramatically escalate trade tensions with countries buying Russian oil, including India, China and Brazil. The proposed law, backed by Republican Senator Lindsey Graham, aims to tighten pressure on Moscow to end the Ukraine war while granting the US President wide powers to penalise Russia’s trade partners.
According to Graham, the bill will allow Trump to “punish countries who buy cheap Russian oil fueling Putin’s war machine.” If passed, the legislation would mandate tariffs of at least 500% on all goods and services imported into the US from countries that knowingly engage in trade involving Russian-origin petroleum and uranium products.
The bill, officially titled the “Sanctioning Russia Act of 2025,” outlines four triggers for sanctions: refusal to negotiate peace with Ukraine, violation of a peace deal, launching another invasion, or attempting to destabilise the Ukrainian government. Once triggered, the President would be required to impose harsh measures, including visa bans, property-blocking sanctions, export controls on US energy products, and massive tariff hikes.
India is already facing heavy US trade penalties. In 2025, Trump imposed a 25% tariff on Indian goods during his “Liberation Day” trade exercise. This was later doubled to 50% as a penalty for India’s continued purchase of Russian oil. With the start of 2026, Trump hinted at further increases, warning that tariffs could be raised “very quickly” if New Delhi maintains its energy ties with Moscow.
While Trump has publicly described Prime Minister Narendra Modi as “a good guy,” his remarks suggest limited tolerance for India’s Russia policy. If the new bill becomes law, India could face its steepest-ever US trade sanctions, potentially reshaping bilateral trade and adding fresh strain to an already complex strategic partnership.