English
English
English
Could US tariffs on India soar from 50% to 500%? Trump’s new Russia sanctions bill targets trade partners including India. How will New Delhi respond to this potential trade shock?
Along with India, China and Brazil will also be under the scanner
New Delhi: The United States may be preparing to sharply escalate trade pressure on countries doing business with Russia, and India could be among the hardest hit. The US President Donald Trump has reportedly approved a new Russia sanctions bill that not only targets Moscow but also countries trading with it raising fears of tariffs jumping from the current 50% to as high as 500%.
According to Republican Senator Lindsey Graham, Trump has “greenlit” a Russia sanctions bill supported by both major US political parties. The legislation is aimed at intensifying pressure on Russia to end the war in Ukraine by tightening economic restrictions and penalising nations that continue trade with Moscow.
Trump Offers China a Deal: “No Longer a One-Way Street”- Soybeans for Tariff Relief?
Graham said a vote on the bill could take place as early as next week. He added that the proposed law would empower the US president to punish countries that purchase discounted Russian oil, which Washington claims helps sustain Russia’s war effort.
After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator Blumenthal and many others.
This will be well-timed, as Ukraine is making concessions for peace…
— Lindsey Graham (@LindseyGrahamSC) January 7, 2026
The bill is expected to focus heavily on Russia’s major trade partners. India, China and Brazil have all been named as countries under scrutiny, reflecting Trump’s earlier warnings to BRICS nations over their economic ties with Moscow.
India, in particular, has increased imports of Russian oil since the Ukraine conflict began, benefiting from discounted prices. This has already made New Delhi a frequent target of criticism from US lawmakers.
The proposed legislation, titled the Sanctioning Russia Act of 2025, outlines strict conditions under which individuals or countries can be sanctioned. These include refusing peace talks with Ukraine, violating any peace agreement, launching further attacks, or attempting to undermine the Ukrainian government.
If enforced, the bill would require the US president to impose penalties such as visa bans, property-blocking measures and tariffs that could go as high as 500%. It also calls for bans on the export or transfer of US-produced energy products to or within Russia.
US-India trade tensions rise as Trump warns of new tariffs over Russian crude
India is currently paying a 50% tariff on certain exports to the US. Initially, Washington imposed a 25% tariff in 2025, followed by an additional 25% penalty for India’s continued purchase of Russian oil. This placed India among the countries facing the highest US trade levies, alongside Brazil.
With the start of 2026, Trump has hinted at raising tariffs again, linking any future decision directly to India’s energy trade with Russia.
If the new sanctions bill becomes law, India could face a steep escalation in tariffs, potentially affecting a wide range of exports to the US. The development raises serious questions about how New Delhi will balance its strategic ties with Russia against growing economic pressure from Washington.
