A new U.S. sanctions bill supported by President Donald Trump could allow Washington to hit countries that continue buying Russian oil with extremely high tariffs — up to 500% on their exports to the U.S. This move is part of a broader strategy to reduce Moscow’s revenue from energy sales, which U.S. lawmakers say helps fund Russia’s war against Ukraine.

Key Highlights

• Trump-backed bill proposes 500% US tariffs on countries importing Russian oil, targeting major buyers.
• India risks export setbacks and trade strain as US weighs tougher secondary sanctions.

India — currently one of the largest buyers of discounted Russian crude — is mentioned among the nations that could face these punitive duties if the bill passes Congress. New Delhi has already been under pressure from the U.S., which imposed a 50% tariff on many Indian exports in 2025 linked to oil purchases from Russia.

If the 500% tariffs become law, Indian goods and services could become practically uncompetitive in the U.S. market, potentially hurting key export sectors and bilateral trade. The United States is one of India’s biggest trading partners, with combined merchandise and services trade worth over $210 billion.

Also Read: Trump Says PM Modi is Unhappy Over US Tariffs on Russian Oil

The legislation — known as the Sanctioning Russia Act of 2025 — would let the U.S. impose tariffs on any country that knowingly imports Russian oil, gas, or related products. Lawmakers say the threat of such steep duties is meant to pressure buyers like India and China to curb Russian energy imports.

India has been reducing its Russian oil imports in recent months and is trying to manage diplomatic talks with Washington to avoid severe economic fallout. But the proposal has raised concerns in New Delhi about how far U.S. trade policy could go and the potential impact on India-U.S. economic ties.