US Bill Allowing 500% Tariffs on India Over Russian Oil Gets Trump’s Approval

The United States is preparing for a sharp escalation in trade pressure against India after President Donald Trump approved a proposed bill that would authorise punitive tariffs of up to 500 per cent on Indian exports if New Delhi continues importing crude oil from Russia. The development signals a tougher stance by Washington as it seeks to cut off revenue streams supporting Moscow’s war effort in Ukraine.

The legislation, backed by Republican Senator Lindsey Graham, is expected to be introduced in the US Senate next week. The bill would grant the US President sweeping authority to impose extreme trade penalties on countries deemed to be knowingly purchasing Russian oil or uranium, placing India directly in its line of fire due to its ongoing energy ties with Moscow.

According to analysts, the proposal represents one of the most aggressive economic measures Washington has contemplated against a strategic partner in recent years. While India has gradually reduced its dependence on Russian crude, US officials appear intent on pushing New Delhi toward a complete halt in such purchases.

The move comes despite data indicating a decline in India’s Russian oil imports in recent months. Indian refiners have scaled back purchases from sanctioned entities, and Russia’s share in India’s crude basket has reportedly dropped below recent highs. However, Washington has made it clear that partial reductions are insufficient, with the bill designed to apply maximum pressure until imports are fully stopped.

The proposed legislation reflects the Trump administration’s broader approach to foreign policy, which emphasises economic coercion and unilateral leverage. Supporters of the bill argue that continued purchases of Russian oil indirectly finance President Vladimir Putin’s military campaign and undermine Western efforts to isolate Moscow.

If enacted, the bill could allow the US to impose tariffs of up to 500 per cent on a wide range of Indian goods, potentially affecting sectors such as pharmaceuticals, textiles, engineering products, and information technology services. Trade experts warn that such measures could severely disrupt bilateral trade and strain long-standing economic ties between New Delhi and Washington.

The development adds to already mounting tensions between the two countries. In recent months, the US has imposed a combination of reciprocal tariffs and additional penalties on Indian imports, citing trade imbalances and energy policy concerns. Trump has publicly expressed dissatisfaction with India’s position, warning that trade actions could be intensified “very quickly” if Washington’s demands are not met.

India, meanwhile, has maintained that its energy policy is driven by national interest, affordability, and energy security. Officials in New Delhi have consistently argued that oil purchases are a commercial decision and that India cannot abruptly sever supplies without risking economic disruption.

Diplomatic observers note that the bill’s timing is significant, as India simultaneously deepens engagement with European partners while recalibrating its energy sourcing strategy. Several major Indian refiners have already paused imports from sanctioned Russian suppliers, even as others continue sourcing from non-sanctioned entities.

As the bill moves toward debate in the US Senate, attention will focus on how India responds to the mounting pressure. The prospect of 500 per cent tariffs represents an unprecedented challenge in India–US relations, raising questions about whether diplomacy can prevent a full-blown trade confrontation or whether economic coercion will define the next phase of bilateral ties.