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Donald Trump’s Russia sanctions bill could trigger 500 percent tariffs on India and China: Here’s why

Trump has cleared a Russia sanctions bill threatening 500% tariffs on countries importing Russian oil, including India and China, raising fresh trade and diplomatic concerns.

By Surjosnata Chatterjee

Jan 08, 2026 13:00 IST

US President Donald Trump has cleared a sweeping Russia sanctions bill that could expose countries such as India, China and Brazil to tariffs of up to 500% for continuing to import Russian oil and petroleum products.

The proposed legislation, titled the Sanctioning Russia Act of 2025, authorises the US President to impose steep duties on nations that “knowingly engage” in trade involving Russian-origin petroleum or uranium if Moscow refuses to negotiate a peace agreement with Ukraine or violates any future settlement.

Under the bill, the President would be required to raise import duties on all goods and services from such countries to at least 500% of their value. The measures could also be reactivated in the event of a renewed Russian invasion or attempts to destabilise Ukraine’s government.

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Bill targets buyers of Russian oil

US Senator Lindsey Graham, one of the bill’s key sponsors, said Trump had “greenlit” the bipartisan legislation following a meeting at the White House. In a post on X, Graham said the bill was designed to penalise countries “who buy cheap Russian oil,” which he said helps finance Russia’s war effort.

“This bill would give President Trump tremendous leverage against countries like China, India and Brazil,” Graham said, adding that it aims to push them to stop importing discounted Russian crude.

The move could have direct implications for India, which has sharply increased its intake of Russian oil since the start of the Ukraine war, citing energy security and price stability.

India seeks relief from existing tariffs

According to Graham, India has already approached Washington seeking relief from tariffs imposed in August 2025. He claimed that Indian Ambassador to the US Vinay Mohan Kwatra met him last month to highlight that India had reduced its Russian oil purchases and requested rollback of an additional 25% duty.

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Those tariffs raised total duties on some Indian exports to 50%, straining trade ties. Trump has publicly acknowledged tensions with Prime Minister Narendra Modi, saying India was unhappy with the measures but had “reduced [oil imports] very substantially” from Russia.

India has rejected Trump’s earlier claim that Modi promised to halt Russian oil imports, stating no such assurance was given.

As the sanctions bill moves toward bipartisan approval, it adds fresh uncertainty to India–US trade relations while Washington continues to link economic pressure to the Ukraine conflict.

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