Trump backs bill that could hit India with 500% tariffs over Russian oil trade

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Donald Trump has backed a US sanctions bill that could penalise countries buying Russian oil, including India and China. Asked about the issue, he said," We have to look. That hasn't been discussed yet."

The proposed law would give the US President the authority to impose steep secondary tariffs. (File Photo: Reuters)

India Today World Desk

UPDATED: Jul 14, 2026 23:50 IST

India's trade ties with the United States could face a fresh test after President Donald Trump backed a sweeping Russia sanctions bill that could impose tariffs of up to 500 per cent on countries buying Russian oil. If implemented, India -- one of Moscow's largest crude buyers -- could find itself at the centre of Trump's latest economic pressure campaign.

The White House confirmed to news agency ANI that Trump's support for the legislation after questions were raised about its future following the death of its lead Republican sponsor, Senator Lindsey Graham.

The proposed law, known as the Sanctioning Russia Act, would give the US President the authority to impose steep secondary tariffs on imports from countries that continue doing business with Russia's energy sector. If passed, it would represent one of the toughest US measures aimed at cutting Moscow's oil revenues since the Ukraine war began.

TRUMP LEAVES SANCTIONS OPTION OPEN

Trump also indicated that his administration has not ruled out imposing secondary sanctions on India and China.

Asked about the issue during remarks in the Oval Office, the US President said," We have to look. That hasn't been discussed yet."

He also expressed confidence that the Russia sanctions bill could become law.

"There's a good chance the Russia sanctions bill gets done," Trump said.

"They might add Iran," he said, later adding that Hezbollah could also be included in the sanctions package being debated in Congress.

WHITE HOUSE BACKS BILL

Responding to a query from ANI on whether Trump supports the legislation and whether India could face fresh penalties for buying Russian crude, a White House official said, "President Trump supports the bill."

The legislation was co-authored by the late Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal. It would allow the President to impose tariffs of up to 500 per cent on imports from countries purchasing Russian oil, gas and petroleum products.

Before his death, Graham repeatedly said the legislation would put pressure on Russia's biggest energy buyers, particularly India and China.

He had stated that China and India together purchase nearly 70 per cent of Russia's oil, gas and petroleum exports and believed that squeezing those markets would increase pressure on Moscow to end the war.

INDIA COULD FACE ECONOMIC IMPACT

The proposed legislation has attracted attention because of its potential impact on countries that continue importing Russian crude.

India reduced its purchases of Russian oil earlier this year during trade negotiations with Washington and after the US imposed sanctions on several Russian energy producers.

According to Kpler data, India's imports of Russian crude fell from around 1.84 million barrels per day in November 2025 to about 1.04 million barrels per day by February 2026.

Another complication emerged after a temporary US Treasury waiver expired on June 17, removing a sanctions exemption that had allowed Indian refiners to continue purchasing Russian crude. That has left India's current buying position in a legal grey area.

The legislation now faces an important test in the US Senate.

Many lawmakers see passing the bill as a tribute to Lindsey Graham, who spent more than a year pushing for the measure before his death.

The bill has also drawn criticism from within the Republican Party.

- Ends

With inputs from agencies

Published By:

Satyam Singh

Published On:

Jul 14, 2026 23:50 IST

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