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

US President Donald Trump has approved a wide-ranging sanctions proposal that could potentially expose countries such as India and China to extremely high import tariffs for continuing trade with Russia, particularly in the energy sector, as per reports. If enacted, the move could put fresh pressure on trade relations between India and US.

The proposed legislation, titled the Sanctioning Russia Act of 2025, would give the US President the authority to levy punitive duties on nations that are found to be knowingly purchasing Russian-origin petroleum or uranium products. India, which has emerged as a major buyer of discounted Russian crude following the outbreak of the Ukraine conflict, is among the countries that could be affected.

According to reports, US Senator Lindsey Graham, who introduced the bill along with Senator Richard Blumenthal, said the objective of the legislation is to cut off financial flows supporting Russia’s military operations. He reportedly named India, China, and Brazil as nations that could come under scrutiny for purchasing what he described as low-cost Russian oil.

Under the proposed framework, tariffs of at least 500% could reportedly be imposed if the US President determines that Russia, or entities acting on its behalf, is unwilling to engage in peace negotiations with Ukraine. The bill also allows for the reactivation of sanctions in the event of a breakdown of any peace agreement, renewed military aggression, or attempts to destabilise Ukraine’s government.

The legislation reportedly directs the US administration to sharply raise import duties on all goods and services entering the United States from countries that continue trading in Russian-origin petroleum or uranium, with tariff levels set at a minimum of 500%.