Trump's 500% Tariff Threat Hits India and China Over Russian Oil

In a significant development affecting global economies, US President Donald Trump is seriously considering imposing 500% tariffs on countries that continue to import Russian energy products such as oil, gas, and uranium. If passed, this legislation would specifically target major importers like India and China. The goal is to reduce Russia's energy revenues and put pressure on President Vladimir Putin to end the conflict in Ukraine.

Key Highlights

• Trump considers backing Sanctioning Russia Act of 2025, imposing 500% U.S. import tariffs on Indian and Chinese purchases of Russian oil.
• Bill seeks to "bunker-buster" Russia’s energy exports via secondary sanctions on third‑party buyers, potentially disrupting economies.

Influential figures such as Senator Lindsey Graham have backed this proposal. Graham described it as a "breakthrough" in economically isolating Russia. He made the announcement recently: "If you are buying energy from Russia and not helping Ukraine, your goods in America will be subject to a 500% tariff." According to reports, President Trump has encouraged the implementation of this tough measure.

If this legislation is passed and implemented by the Trump administration, countries such as India and China, which have increased their imports of Russian oil and gas during global sanctions, will face unprecedented tariffs of up to 500% on products entering the US market. This action is likely to escalate trade tensions, particularly with India, a key strategic partner.

This potential tariff follows President Trump's recent tariff announcements targeting a variety of countries. Brazil, for example, may face a proposed 50% tariff, whereas Canada has received a 35% tariff. New duties have also been imposed on products from seven other countries, including the Philippines, Moldova, Sri Lanka, and Libya.

Also Read: Indian Negotiators Head to US Again to Resume Trade Talks

President Trump has stated that these new tariffs, including a possible 500% tax on Russian energy importers, will take effect on August 1, 2025. This move highlights a growing economic pressure campaign against countries perceived to be indirectly supporting Russia's war efforts via energy trade.