Will US Impose 500% Tariffs on India? Trump Backs Bill Over Russian Oil Purchases

The proposed legislation targets countries continuing to buy Russian energy, with India and China identified as the biggest purchasers.

US President Donald Trump supports the proposed Sanctioning Russia Act, a bill that could impose tariffs of up to 500 per cent on countries continuing to buy Russian energy.

Source : ANI

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Key points generated by AI, verified by newsroom

• US President supports bill targeting Russian oil buyers.
• Proposed bill enables 500% tariffs on countries like India.
• Expired US waiver increases tariff risk, impacting India's economy.
• India defends oil imports as crucial for national economic needs.

The White House has thrown its weight behind a proposed sanctions bill that could expose India to tariffs of up to 500 per cent over its continued purchases of Russian oil.

Responding to a query from ANI, a White House official confirmed that US President Donald Trump supports the legislation.

"President Trump supports the bill," the official said.

Sanctions Bill Targets Countries Buying Russian Energy

The proposal, titled the Sanctioning Russia Act, was introduced by late Republican Sen. Lindsey Graham along with Democratic Sen. Richard Blumenthal.

If approved, the legislation would authorise the US president to impose tariffs of up to 500 per cent on imports from countries that continue to do business with Russia's energy sector.

During his campaign in support of the bill, Graham repeatedly argued that economic pressure should extend beyond Moscow to countries that continue to finance Russia through energy purchases.

India and China Identified As Major Buyers

Graham frequently identified India and China as the primary targets of the proposed legislation, saying the two countries together account for nearly 70 per cent of Russia's oil, gas and petroleum exports.

According to Graham, reducing demand from these major buyers would increase economic pressure on Moscow and could help bring the war in Ukraine closer to an end.

If Congress passes the bill, it would grant the US president one of the broadest authorities ever provided by lawmakers to impose secondary tariffs on countries trading with Russia's energy industry.

Expiry Of US Waiver Adds To Uncertainty

The situation became more complicated after a temporary waiver issued by the US Treasury expired on June 17, 2026.

The waiver had allowed India to continue purchasing Russian crude without triggering sanctions. With its expiry, India's imports have entered what observers describe as a legal grey area.

Economists have warned that a full 500 per cent tariff could significantly affect India's economy, with estimates suggesting the country's GDP could shrink by as much as 0.5 per cent.

Export-oriented industries, including pharmaceuticals, textiles and IT services, are expected to be among the first sectors to face the impact if the proposed tariffs are implemented.

India Maintains Energy Imports Driven By Economic Needs

India has consistently maintained that its energy procurement decisions are guided by national economic interests rather than geopolitical considerations.

New Delhi has repeatedly defended its purchase of Russian crude, saying affordable energy imports remain essential to meeting the country's domestic economic requirements.