Trump backs 500% tariff on India's Russian oil trade to pressure Putin

The proposed US bill seeks harsh penalties on Russian oil buyers like India and China, aiming to choke Kremlin's war funding and compel an end to the Ukraine war

US President Donald Trump said he is strongly considering supporting a proposed sanctions bill aimed at pressuring Russian President Vladimir Putin to end the war in Ukraine. The legislation, known as the Sanctioning Russia Act of 2025, includes a provision to impose a 500 per cent tariff on countries like India and China that continue purchasing Russian energy products.

 

“I’m looking. It’s totally my option. They pass it totally at my option, and to terminate totally at my option. And I’m looking at it very strongly,” Trump told reporters during a Cabinet meeting.

 

Trump also expressed growing frustration with Putin for prolonging the conflict in Ukraine. He recently instructed the US Department of Defence to send more defensive weapons to Ukraine, signalling a harder stance, according to the Associated Press.   

 

 

What does the Sanctioning Russia Act propose?

 

Introduced in April by Senator Lindsey Graham, a close Trump ally, the bill proposes sweeping penalties on countries that continue importing Russian-origin oil, natural gas, uranium, or petroleum products. It also includes provisions for broader sanctions against Russian companies, state institutions, and senior officials.

 

In a June 30 interview with ABC News, Graham said Trump had encouraged legislators to push the bill forward. “This is a big breakthrough,” he stated, noting that the bill would strengthen Trump’s hand in future negotiations with Putin.

 

India, China in focus as top buyers of Russian oil

 

Graham clarified that the bill targets countries whose oil purchases help fund Russia’s war effort. “If you are buying products from Russia and you are not helping Ukraine, then there’s a 500 per cent tariff on your products coming into the United States,” he said. He cited that India and China account for roughly 70 per cent of Russia’s oil exports.

 

Donald Trump can grant limited waivers under the bill

 

The legislation includes a provision allowing the US President to issue a one-time, 180-day waiver to any country, based on national security interests. According to a Hindustan Times report, lawmakers are also considering amendments that would allow a second waiver under certain conditions.   

 

Donald Trump targets smaller trade partners in tariff move

 

Trump also issued letters to seven smaller US trading partners on Wednesday — Philippines, Brunei, Moldova, Algeria, Libya, Iraq, and Sri Lanka — announcing new tariffs. These countries are not considered major industrial competitors to the US.

 

Earlier this week, Trump announced a 35 per cent tariff on Serbia, framing it as a tool for promoting peace through trade negotiations. He said the new tariff rates were determined based on “common sense and trade imbalances.”

 

Africa not under scrutiny, says Trump

 

When asked about visiting African leaders from Liberia, Senegal, Gabon, Mauritania, and Guinea-Bissau, Trump stated he had no intention of imposing penalties. “These are friends of mine now,” he said.