India Faces Uncertainty as US Plans 500% Tariff on Major Russian Oil Importers

Explained: US Plans 500% Tariff on Russian Oil Buyers — What It Means for India.

The United States is preparing to impose massive tariffs on countries that continue trading with Russia, three years after its full-scale invasion of Ukraine. Among the key nations in the crosshairs are India and China, both of which have continued to import discounted Russian oil despite ongoing Western sanctions.

US Senator Lindsey Graham, a Republican from South Carolina, revealed that former President Donald Trump has backed a bill that proposes a 500% tariff on imports from countries that maintain trade ties with Moscow. The goal: to choke Russia’s war economy and pressure President Vladimir Putin into peace talks.

🔎 What the Proposed Bill Says
The bill, introduced by Graham, has garnered 84 co-sponsors in the US Senate and could be brought to a vote after the July congressional break. It seeks to penalize countries that continue to buy goods, particularly oil, from Russia, unless they also provide support to Ukraine.

“If you’re buying products from Russia and you’re not helping Ukraine, then there’s a 500% tariff on your products coming into the United States,” Graham told ABC News.
“India and China buy 70% of Putin’s oil. They keep his war machine going.”

Trump reportedly supports the bill and has encouraged Graham to move it forward, though a waiver provision gives the President discretion on whether to enforce the tariffs.

📆 When Will It Be Voted On?
Originally proposed in March, the bill is now expected to be tabled in August. Earlier delays were attributed to hesitation within the Trump camp, which was reportedly trying to reset ties with Russia. However, recent developments suggest the administration may now back the proposed sanctions.

To make the bill more palatable, Graham has added a waiver for countries aiding Ukraine — a move designed to avoid damaging US-EU relations and blunt criticism of the bill’s scope.

🇮🇳 How India May Be Impacted
India, the world’s third-largest oil importer, could face steep consequences if the bill becomes law. Since Russia’s invasion of Ukraine in 2022, India has dramatically ramped up its oil purchases from Russia, which now account for over 40% of its total crude imports — up from less than 1% pre-war.

In June alone, India imported more Russian oil than from its traditional suppliers in the Middle East combined. Analysts estimate Indian refiners imported over 2 million barrels per day of Russian crude that month, the highest in two years.

If the US enforces the 500% tariff, Indian exports to the US — particularly in key sectors like pharmaceuticals, textiles, and machinery — could be hit hard. However, ongoing trade negotiations between India and the US may provide some buffer if a bilateral deal is reached in time.

⚖️ Trump’s Balancing Act
While Trump has voiced support for the bill, reports indicate the White House previously asked Graham to soften its language — suggesting changing “shall” to “may” in key clauses to make enforcement discretionary rather than mandatory.

This indicates Trump may want to retain leverage without immediately alienating strategic partners like India, especially as Washington attempts to deepen Indo-US ties amid tensions with China.

🗣️ Russia Responds
Reacting to Graham’s comments, Kremlin spokesperson Dmitry Peskov dismissed him as part of a group of “inveterate Russophobes.”