Sanctions or Strategy? Trump’s 500% Tariff Threat Puts India in the Crosshairs

Image Source: The Economic Times

In a dramatic escalation of US sanctions policy, President Donald Trump has strongly supported the Sanctioning Russia Act of 2025—a Senate bill that would level a 500% tariff on countries still importing Russian energy, India and China firmly in its crosshairs.

Major points of the bill and Trump's comments:

The legislation aims at nations buying Russianorigin oil, gas, uranium, and petroleum products
India and China account for nearly 70% of Russia's exports, and hence they are the prime targets
Trump stated, "The enforcement is totally at my option," expressing executive discretion
It also contains a onetime 180day waiver, and legislators are considering a second waiver provision
Bill sponsor Senator Lindsey Graham assured Trump's backing in a recent meeting

Strategic implications for India:

India imported €4.2 billion worth of Russian fossil fuels in May, 72% of which consisted of crude oil
The proposed tariff could impact Indian exports to America, including drugs, IT services, and textiles
External Affairs Minister S Jaishankar has confirmed diplomatic talks with US legislators to secure India's energy security
The law may be employed as a bargaining chip during broader USIndia trade negotiations under way

With Trump's support and bipartisan backing, the bill is likely to sail through Congress quickly. Passage would remake IndianAmerican commercial relations and place additional geopolitical pressure on Russia.

Sources: Business Standard, Hindustan Times, Moneycontrol, MSN India, New Indian Express, Firstpost, Reuters, PTI, Associated Press, ABC News, US Senate Filings