President Donald Trump has thrown his support behind a bipartisan Senate bill that could place a massive 500% tariff on goods entering the United States from countries continuing to trade with Russia. The proposal, according to Republican Senator Lindsey Graham, aims to penalize nations like India and China, which he claims arepropping up Russia’s war economy through large-scale oil purchases.
Speaking in a televised interview with ABC News, Senator Graham explained the bill’s rationale, stating, “If you’re trading with Russia while turning your back on Ukraine, expect your products to be taxed heavily when they enter the United States.” He pointed out that India and China collectively buy nearly 70% of Russian oil, providing critical revenue for President Putin’s military operations in Ukraine.
The bill, co-authored with Democratic Senator Richard Blumenthal, reportedly has wide support in Congress, with 84 senators ready to back it. Graham mentioned that President Trump greenlit the initiative during a recent golf outing, telling him, “It’s time to move your bill.”
A report by the Wall Street Journal revealed that the Trump administration had earlier encouraged adjustments to the bill’s language—suggesting that rigid terms like “shall” be replaced with softer, more flexible alternatives like “may.” This change was aimed at reducing the mandatory nature of enforcement, making it more adaptable in the diplomatic space.
As the war in Ukraine stretches into its third year, the Trump administration is trying to balance diplomatic caution with the growing urgency to pressure Russian allies economically. US Secretary of State Marco Rubio noted that while Washington remains committed to avoiding disruption to broader peace efforts, sanctions and tariffs remain viable tools on the table.
For India and China, this legislation could carry significant consequences. India’s trade with Russia has surged to a record $68.7 billion in the 2024–25 fiscal year, up sharply from just $10.1 billion before the COVID-19 pandemic. This increase is largely fueled by India’s growing demand for discounted Russian oil and other critical imports. Both nations have ambitious plans to scale trade with Russia to $100 billion by 2030.
If passed, the proposed tariff hike could severely disrupt those plans—adding new pressure on India and China to reconsider their economic alignment with Moscow.
