Trump-Backed Tariff Bombshell: India, China Face 500% Duties Over Russian Oil Trade

A bipartisan U.S. Senate bill, strongly endorsed by former President Donald Trump, is shaking up global trade dynamics with a proposal to impose 500% tariffs on countries continuing to buy oil and other goods from Russia—chiefly targeting India and China, who together account for nearly 70% of Russia’s oil exports.

 

The bill, co-sponsored by Republican Senator Lindsey Graham and Democrat Richard Blumenthal, aims to economically isolate Moscow and pressure it into ending the war in Ukraine. Trump reportedly gave the green light during a recent golf game, calling it a “tool” to bring Russian President Vladimir Putin to the negotiating table.

 

Key Highlights:

 

- The bill allows the U.S. President to impose 500% tariffs on imports from countries trading with Russia unless they actively support Ukraine.

- India, now sourcing 40–44% of its crude oil from Russia, could see major sectors like pharmaceuticals, textiles, and IT services hit by punitive duties.

- The legislation includes a presidential waiver, giving Trump discretion on enforcement if passed.

- The bill has 84 Senate co-sponsors and is expected to be introduced in August 2025.

- India and the U.S. are simultaneously negotiating a trade deal, now clouded by this development.

 

While the bill is framed as a geopolitical lever, it risks straining U.S. ties with key partners and disrupting global supply chains. India has defended its Russian oil imports as a matter of energy security, and officials have reiterated opposition to unilateral sanctions.

 

Source: The Logical Indian, India Today, Times Now