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Bill Threatening 500% Tariff On India For Russia Oil Trade Gets Trump’s Nod

Bill Threatening 500% Tariff On India For Russia Oil Trade Gets Trump

U.S. President Donald Trump has approved (green lit) a bipartisan Russia sanctions bill that could allow the United States to impose tariffs of up to 500% on countries continuing to purchase Russian oil, gas, uranium and other energy products.

The proposed legislation is aimed at tightening economic pressure on Russia over its ongoing war in Ukraine. According to the bill’s sponsors, countries that “knowingly” buy Russian energy are helping fund Moscow’s war effort and should face severe trade penalties.

India and China in focus

India and China have emerged as the largest buyers of discounted Russian crude oil since Western sanctions were imposed. As a result, both countries are directly mentioned as potential targets of the proposed tariff action. Brazil and some other nations could also fall under the bill’s scope.

If enacted and enforced, the bill would empower the U.S. President to impose extreme tariffs up to five times the value of imported goods on exports from these countries to the U.S.

Not law yet

While President Trump has expressed support, the bill has not yet become law. It still requires approval from the U.S. Congress. Lawmakers backing the proposal say a vote could take place soon.

Even if passed, the tariffs would not be automatic. The legislation gives the President discretionary powers, meaning Trump would decide whether, when, and to what extent the tariffs are applied.

Why the bill matters

For India, such tariffs could severely impact exports to the U.S., including sectors like:

  • Gems and jewellery
  • Textiles
  • Pharmaceuticals
  • Engineering goods

The move could also strain India – U.S. strategic and trade relations, even as both countries continue cooperation in defence and technology.

India’s position

India has consistently defended its Russian oil imports, stating that:

  • Energy purchases are driven by national interest and affordability
  • Western countries themselves bought Russian energy earlier
  • India follows UN sanctions, not unilateral restrictions

Global implications

The bill reflects a tougher U.S. stance on countries maintaining economic ties with Russia and signals that secondary sanctions may become a central tool of U.S. foreign policy going forward.

For now, the proposal has increased diplomatic pressure, but its real impact will depend on Congress approval and Trump’s final decision on enforcement.

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