Trump Approves Bill Proposing 500% Tariffs on India, China, and Brazil over Russian Oil Trade

The US President Donald Trump has approved a new sanctions bill, the 'Sanctioning Russia Act of 2025,' which aims to impose massive tariffs on countries importing Russian petroleum and uranium products.

Major Provisions of the Bill

● Massive Punitive Tariffs: The bill mandates the US President to increase the rate of duty on all goods and services imported into the United States from countries that "knowingly engage in the exchange of Russian-origin uranium and petroleum products" to at least 500% of their value.

● Targeting Nations: The legislation directly targets countries like India, China and Brazil, which have significantly increased imports of discounted Russian crude oil.

● Bipartisan Approval: The bill is a bipartisan effort and is reportedly headed for a vote in the US Congress soon.

● Presidential Approval: US Senator Lindsey Graham confirmed that President Donald Trump has "greenlit" the bipartisan legislation, allowing it to move forward.

● Seeks to economically isolate Russia by disrupting its global energy trade network.

● Aimed at Funding: Senator Lindsey Graham stated the bill is designed to "punish those countries who buy cheap Russian oil" to cut off Russia's war-funding revenue.

Trigger and Revocation Conditions

● Sanctions triggered if Russia refuses to negotiate peace with Ukraine or acts through its agents to block peace efforts.

● Measures may be revoked if:

- A peace agreement is reached and honored

- There is no fresh invasion of Ukraine

- There is no attempt to overthrow or subvert the Ukrainian government

Implications for India–U.S. Trade Relations

● The US is one of India’s largest export destinations; the bill introduces uncertainty into this partnership.

● A 500% tariff risk may lead to:

- Reduced competitiveness of Indian exports in the US market

- Will impact export of textiles, pharmaceuticals, engineering goods, gems & jewellery.

- Disruption of long-term contracts and investor confidence

India’s Stand

India is closely following developments on the US proposed bill on additional tariffs for buying Russian oil. Both countries were close to a trade deal on several occasions, India remains interested in a mutually beneficial trade deal with US. At present, US has imposed 50% tariff on goods imported from India.

Conclusion

The Sanctioning Russia Act of 2025 represents a major shift in US economic coercive strategy. While it aims to curtail Russia’s war financing, it also places India at the center of global energy geopolitics, requiring careful balancing of energy security, economic interests, and strategic autonomy.