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India In Crosshairs Of US Bill Proposing 500% Tariffs Over Russian Oil Purchases

Trump has publicly expressed displeasure over India’s Russian oil imports, warning that Washington could raise tariffs “very quickly”, even as New Delhi begins to cut purchases.

AP/Ben Curtis; Representational image
Summary
  • US Senator Lindsey Graham said President Donald Trump has “greenlit” a bipartisan sanctions bill that could impose 500 per cent tariffs on countries, including India, that continue to buy Russian oil.

  • The proposed Sanctioning Russia Act of 2025 comes as India faces steep US tariffs and negotiates a trade deal with Washington, raising fresh economic and diplomatic concerns.

India has once again come under scrutiny from a proposed US law that seeks to impose 500 per cent tariffs on countries purchasing Russian oil, after senior Republican leader and US Senator Lindsey Graham said President Donald Trump has “greenlit” the Russia sanctions bill.

Naming India, Graham said, “This bill would give President Trump tremendous leverage against countries like China, India and Brazil to incentivise them to stop buying the cheap Russian oil that provides the financing for [Vladimir] Putin’s bloodbath against Ukraine.”

Earlier this week, on January 5, Graham said Indian Ambassador to the US Vinay Kwatra had informed him that New Delhi was reducing its purchases of Russian oil and had asked him to convey to President Trump to “relieve the tariff” imposed on India.

Speaking alongside Trump aboard Air Force One on Sunday, Graham referred to his tariff proposal, which seeks to levy 500 per cent duties on imports from countries buying Russian oil. Trump said Indian Prime Minister Narendra Modi “knew he was not happy” with India’s Russian oil purchases and that Washington could raise tariffs on New Delhi “very quickly”.

On Thursday, Graham said in a statement, “After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator Blumenthal and many others.”

“This will be well-timed, as Ukraine is making concessions for peace and Putin is all talk, continuing to kill the innocent. This bill will allow President Trump to punish those countries that buy cheap Russian oil, fuelling Putin’s war machine,” he said.

“I look forward to a strong bipartisan vote, hopefully as early as next week,” Graham added.

The Sanctioning Russia Act of 2025, authored by Graham and Democratic Senator Richard Blumenthal of Connecticut, would allow the US administration to impose tariffs and secondary sanctions on countries importing Russian oil, gas, uranium and other exports, with the aim of cutting off funding for Russia’s military actions.

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According to the Associated Press, the White House had earlier sought revisions and flexibility for Trump in the sanctions package, though a White House official did not specify on Wednesday whether those changes had been secured.

The Trump administration is currently engaged in negotiations to end the war in Ukraine, which has been ongoing for nearly four years.

Graham’s bill comes as India has begun reducing oil imports from Russia following the imposition of 25 per cent US tariffs in August last year. Since September 2025, Indian imports from Russia have declined, with official trade data showing a drop of more than 18 per cent between April and October compared with the previous year.

India is already facing tariffs of up to 50 per cent on its exports to the US, making it the hardest-hit country globally. The measures have weighed on exports to one of India’s key markets and dampened investment flows.

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Meanwhile, New Delhi and Washington are negotiating a trade deal and are aiming to conclude talks at the earliest.

(with inputs from The Indian Express)

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