From 500% to 100%: Why India Still Faces a Massive US Tariff Threat

In a move backed by both Republican and Democratic lawmakers, the US is pushing ahead with a sanctions bill that would allow President Donald Trump to impose tariffs of up to 100% on countries importing Russian oil and gas, including India and China.

The legislation, introduced by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal, earlier proposed tariffs of up to 500%. The latest version sets the maximum tariff at 100%, which remains a significant trade penalty for countries buying Russian energy.

Bipartisan support to pressure Russia

The bill has support from both major US political parties and is aimed at increasing economic pressure on Moscow to end its more than four-year-long war in Ukraine. It would authorise President Trump to levy tariffs on nations continuing to purchase Russian oil and gas.

India, China among key targets

India and China are among the world's largest importers of Russian crude oil, making them the most affected if the legislation becomes law. Reports also list Slovakia, Hungary and Azerbaijan among major buyers of Russian crude, while China, France, Japan, Hungary and Belgium are leading importers of Russian natural gas.

If imposed, the tariffs could have major implications for trade between the US and countries that continue importing Russian energy.

Bill revised after negotiations

The earlier draft proposed tariffs of up to 500%, but the revised version now authorises tariffs of up to 100% following months of negotiations aimed at securing broader political support, including from President Donald Trump.

According to reports, a Senate aide said the proposal has broad bipartisan backing and is expected to move forward as Washington seeks to intensify pressure on Russia.

Also read: US bill could open door to 500% tariffs on India over Russian oil imports