Donald Trump Backs 500 Percent Tariff Threat on Countries Buying Russian Oil, India Faces Major Trade Risk

New Delhi, January 8: US President Donald Trump has given formal backing to a tough bipartisan sanctions proposal that could impose tariffs of up to 500 percent on countries continuing to import Russian energy, significantly escalating economic pressure on Moscow and its global trade partners. The move was confirmed by Lindsey Graham after a White House meeting, signaling strong executive support ahead of a likely Senate vote.

The legislation, titled the Sanctioning Russia Act of 2025, has been co-sponsored by Graham and Richard Blumenthal. It mandates that the US president impose import duties of at least 500 percent on all goods and services from countries knowingly purchasing Russian oil, natural gas, or uranium. The bill is designed to cut off revenues that supporters say are sustaining Russia’s military campaign in Ukraine. Donald Trump’s Tariff Threat on India ‘Self-Inflicted Wound’, Caused ‘Real Trouble’ in Relations, Says Former US NSA John Bolton (Watch Video).

India Under Direct Pressure

The proposed sanctions carry serious implications for India, currently one of the largest buyers of discounted Russian crude. New Delhi has already faced heightened trade pressure in 2025, after the Trump administration imposed a 25 percent reciprocal tariff along with an additional 25 percent penalty linked to Russian oil purchases, pushing total duties on some Indian exports to 50 percent. ‘PM Modi’s a Very Good Man, He Knew I Was Not Happy’: US President Donald Trump Praises Indian PM for Reportedly Cutting Russian Oil Imports, Warns of Tariffs.

Although President Trump recently described Indian Prime Minister Narendra Modi as a “very good man,” he has made it clear that strategic ties will not override economic enforcement. Trump told reporters that while India had taken steps to slightly reduce imports, current purchase levels remain unacceptable to Washington.

Trade as Diplomatic Leverage

Supporters of the bill argue that secondary sanctions are the most effective way to pressure Russia by targeting revenue flows from neutral economies. Graham said the legislation would give President Trump “tremendous leverage” in ongoing peace efforts and leave little scope for waivers or exemptions.

The bill enjoys strong bipartisan backing with dozens of Senate co-sponsors and could be brought to a floor vote as early as next week. Trump’s endorsement marks a clear shift toward a more aggressive trade driven foreign policy approach.

If enacted, the Sanctioning Russia Act of 2025 could redraw global energy trade routes and place the US India strategic partnership under significant strain, forcing major economies to choose between access to the American market and continued reliance on Russian energy.

(The above story first appeared on LatestLY on Jan 08, 2026 12:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).