Donald Trump mulling to impose 500% tariffs over Russian oil purchases

US President Donald Trump has officially greenlit a bipartisan sanctions bill that could see tariffs on Indian and Chinese goods skyrocket by up to 500 percent. Republican Senator Lindsey Graham announced the development following a "productive" meeting with the President on Wednesday. The legislation, titled the "Sanctioning Russia Act of 2025," specifically targets nations that continue to purchase oil and uranium from Russia, thereby indirectly financing Vladimir Putin’s military campaign in Ukraine.

Sponsored by Graham and Democratic Senator Richard Blumenthal, the bill is designed to provide the Trump administration with massive economic leverage over major global players like India, China, and Brazil. The core objective is to incentivize these nations to stop purchasing discounted Russian energy. Graham emphasized that the timing is critical as Ukraine considers peace concessions, and the US aims to squeeze Russia's "war machine" by cutting off its primary revenue streams from energy exports.

This escalation follows a period of already strained ties between New Delhi and Washington. Last year, the Trump administration had already imposed a 50 percent total duty on certain Indian imports—comprising a 25 percent reciprocal tariff and an additional 25 percent penalty for Russian oil trade. While Indian officials have recently highlighted a reduction in Russian oil imports to seek relief, the new bill raises the stakes significantly, allowing for a minimum 500 percent tariff ad valorem on all goods from "knowingly" purchasing countries.