India Faces 500% Tariff Threat Over Russian Oil Purchases as Trump Backs Sanctions Bill

Washington: India could be staring at a sharp trade shock after US Republican Senator Lindsey Graham said President Donald Trump has approved a hardline Russia sanctions bill that includes the threat of a massive 500 per cent tariff on countries buying Russian oil. The warning has put New Delhi, along with China and Brazil, squarely in focus as Washington looks for new ways to squeeze Moscow.

What Is the Bill and Why Does India Feature in It?

The proposed legislation, pushed by Republican Senator Lindsey Graham, is aimed at tightening economic pressure on Russia amid the ongoing Ukraine war. 

According to Graham, Trump has "greenlit" the bill, which would allow the US to impose steep tariffs on nations that continue to purchase Russian energy.

India has emerged as one of the largest buyers of discounted Russian crude since the war began. That has helped New Delhi manage fuel prices at home, but it has also drawn scrutiny from Western capitals.

Graham said that he met with Trump on Wednesday, during which the President extended his support to the bill that has been in the works for months.

"After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator Blumenthal and many others. This will be well-timed, as Ukraine is making concessions for peace and Putin is all talk, continuing to kill the innocent," he wrote on X.

Why a 500 per cent Tariff and Is It Realistic?

The headline-grabbing figure of a 500 per cent tariff is being projected as a deterrent rather than an automatic penalty. US lawmakers backing the bill say the idea is to create leverage not just against Russia, but against its major oil customers.

Graham has openly named India, China and Brazil while arguing that cheap Russian oil is indirectly funding Moscow’s war effort. Whether such an extreme tariff would actually be imposed remains unclear, but its inclusion signals a far more confrontational approach.

How Has India Responded So Far?

Indian officials have consistently defended the country’s energy purchases, pointing to national interest and the need to secure affordable supplies for a large population. New Delhi has also stressed that its ties with Russia are long-standing and not driven by the Ukraine conflict alone.

So far, there has been no official response to the latest remarks from Washington.