U.S. Strikes Hard: 500% Tariff on Russia-Trading Nations- India on High Alert

International News: It has been over three years since the Russia-Ukraine conflict began, yet despite sweeping Western sanctions, countries like India and China continue to import large quantities of oil and other goods from Russia. Displeased with this ongoing trade, the United States is signaling a much tougher approach.

Senator Graham Introduces Aggressive Bill With Trump’s Backing

U.S. Senator Lindsey Graham has introduced a highly aggressive bill that proposes imposing tariffs of up to 500% on countries that continue trading with Russia. The bill enjoys strong backing from former President Donald Trump, and sources suggest it could be brought for a vote in the U.S. Senate by late July.

The Objective: Crippling Putin’s “War Machine”

According to Graham, the primary goal of this legislation is to weaken Russia’s economy, particularly its military-industrial complex, which he calls Putin’s "war machine." He claims that India and China purchase around 70% of Russia’s oil exports, thereby providing Moscow with vital economic support throughout the war.

Speaking to ABC News on Sunday, Graham stated, “We’re giving Trump a tool he hasn’t had so far.” He further noted that the bill has already received support from 84 U.S. senators, significantly boosting its chances of passing.

Why This Poses a Serious Concern for India

India has emerged as a major importer of discounted Russian crude oil in recent years. Before the war, Russia accounted for merely 1% of India’s oil imports. Today, that share has soared to over 40%. To circumvent Western financial restrictions, India and Russia have been conducting transactions through the rupee-ruble payment system, effectively sidestepping the dollar-dominated global financial framework.

If the proposed U.S. bill is passed and implemented, Indian exports to the U.S. could be slapped with steep tariffs, impacting key sectors such as textiles, pharmaceuticals, auto components, and IT services. Such tariffs could reduce the competitiveness of Indian goods in one of its most crucial markets.

Although India and the U.S. are currently negotiating a trade agreement that may help soften the blow, the bill nonetheless presents a significant risk to India’s export strategy and diplomatic positioning.

Trump May Get Veto Power Over Implementation

Interestingly, the bill also includes a provision granting the President veto authority, giving Trump (if re-elected) the discretion to decide whether or not to enforce the tariffs. This gives the White House substantial flexibility to tailor its approach based on broader geopolitical considerations and bilateral relations.

Political analysts believe that if Trump wins the 2024 U.S. presidential election, the chances of the bill being partially or fully enforced will likely increase.

Russia Slams the Bill, Calls It “Anti-Russian Propaganda”

Reacting strongly to the proposal, Kremlin spokesperson Dmitry Peskov condemned Senator Graham as the “face of Russophobia.” He remarked, “If it were up to Graham, Russia would have already faced a blanket of sanctions by now.”

Peskov also questioned the effectiveness of such measures, asking whether extreme economic pressure would truly lead to peace or simply destabilize global trade further.

India at a Diplomatic Crossroads

This bill, if passed, could push India into a diplomatic dilemma. On one side, India seeks to fulfill its energy needs and economic interests by purchasing affordable Russian oil. On the other, it must carefully manage its strategic and economic ties with the United States, which have grown significantly over the past decade.

The coming weeks will be critical in determining India’s strategy—whether it engages diplomatically with the U.S. to seek exemptions or safeguards or persists with its Russia policy while working to establish a new geopolitical balance.