WASHINGTON: A new US sanctions bill backed by President Donald Trump, seeking 500 per cent tariffs on India for importing Russian oil, has triggered serious economic and diplomatic concerns for New Delhi, which remains a major buyer of discounted Russian crude.
The bill, sponsored by Senator Lindsey Graham, aims to pressure countries like India and China to stop buying Russian oil, thereby reducing Moscow’s revenue for its war efforts in Ukraine.
India has been importing significant amounts of Russian oil at discounted prices, making it a key target of the proposed legislation.
The bipartisan Sanctioning Russia Act of 2025 mandates the US President to slap at least 500% import duties on India and other nations continuing trade in Russian energy. The move is designed to “cripple Russia’s war machine” and force a negotiated end to the Ukraine conflict.
The proposed tariff escalation comes at a time when India is already reeling under US duties of up to 50% on several export items after multiple tariff rounds since 2025. A further increase could hit India’s IT services, pharmaceuticals, textiles, auto components, steel and aluminum sectors, risking job losses and export shrinkage.
Senator Graham openly signaled that the legislation targets China, India and Brazil, calling the bill “leverage against big economies financing Putin’s military machine.” He confirmed that India has already been lobbying Washington for relief, with Ambassador Vinay Mohan Kwatra presenting evidence of reduced Russian imports.
President Trump acknowledged that Prime Minister Narendra Modi is unhappy with the tariff policy but warned that levies could rise sharply if India “does not fall in line” with US restrictions on Russian energy.
