In a fresh salvo targeting Russian oil purchases, US President Donald Trump has reportedly given a go-ahead to a Bill that might result in increasing the tariffs at least 500 per cent on countries, including India, that continue to buy Russian oil despite US sanctions.
Republican Senator Lindsey Graham in a post X said the legislation has been given a green signal by the US President after he met Trump on Wednesday. The Bill, he said, is likely to be taken up by the Congress as early as next week.
— LindseyGrahamSC (@LindseyGrahamSC)
If approved, the Bill would slap tariffs as high as 500 per cent on India– also China and Brazil–further deteriorating the already strained relations between the two nations. “This Bill will allow President Trump to punish those countries who buy cheap Russian oil fuelling Putin’s war machine,” Graham said, adding that it would give Trump “tremendous leverage” over India, China and Brazil.
The bill, named “Sanctioning of Russia Act 2025”, proposes wide-ranging penalties on individuals and entities connected to Russia. One major provision includes increasing duties on all goods and services imported from Russia into the US to at least 500 per cent of their value.
Has India stopped buying Russian oil?
In 2025, the White House imposed tariffs of up to 50 per cent on Indian goods, including 25 per cent for purchasing Russian oil.
According to data from Finland-based Centre for Research on Energy and Clean Air (CREA), India has imported $168 billion worth of Russian crude oil since Vladimir Putin invaded Ukraine in February 2022.
India has been the second-biggest buyer of Russian oil while China leads the pack.
However, there has been a considerable decline in importing of Russian oil by India given the sanctions.
According to Kpler, India’s imports of Russian crude fell by 595 kbpd month-on-month in December, dropping to 1.24 mbpd—the lowest level since December 2022
However, reportedly, state-owned refiners in India are still buying Russian oil. The decline has been largely driven by reduced buying from Mukesh Ambani-owned Reliance Industries, which had been a major importer before the US sanctions on Lukoil and Rosneft took effect in late November.
What would 500% tariffs mean for India?
For India, a 500% US tariff would amount to an effective shutdown of exports in any sector it is applied to. The US is India’s largest export market, with outbound shipments crossing $75 billion annually.
The imposition of 50 per cent tariffs on Indian exports to the US has already crippled the demand for major labour intensive industries of India, including textile, auto components etc.
What next?
A lot now depends on how the US Congress handles the Bill. Meanwhile, the ongoing negotiations of a trade pact do not seem to be nearing completion.
India has consistently maintained that buying Russian oil is an issue of energy security for the country and price stability, not geopolitical alignment. It remains to be seen how the entire episode will pan out.
