US Senate bill backed by Trump proposes 500% tariffs on India, China over Russian oil trade

A proposed US Senate bill could dramatically reshape global trade, with sweeping 500% tariffs on countries that continue to do business with Russia, a move that could significantly impact India and China, two of Moscow’s biggest crude oil customers.

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Republican Senator Lindsey Graham, in an interview, confirmed that the bill is expected to be introduced in August and has the backing of former President Donald Trump. According to Graham, the legislation targets countries that keep buying Russian oil and do not actively support Ukraine amid the ongoing war. “India and China buy 70% of Putin’s oil. They keep his war machine going,” Graham told in the interview.

Co-sponsored by Democratic Senator Richard Blumenthal, the bill reportedly has bipartisan support from 84 co-sponsors. The proposed measure would impose punitive tariffs on goods entering the US from nations trading with Russia, potentially affecting India’s key exports such as pharmaceuticals, textiles, and IT services.

Some other media sources reported that the Trump administration had previously sought to soften the bill’s mandatory language, replacing “shall” with “may,” giving the White House discretion to enforce the tariffs. Graham also noted that carve-outs could be made for countries that provide support to Ukraine, possibly to reassure European allies.

India emerged as a major buyer of discounted Russian crude after the Ukraine invasion began in February 2022, spending over EUR 49 billion on Russian oil in the third year of the conflict.