Washington: The United States is planning a dramatic escalation in economic pressure on countries that continue to trade with Russia, three years into Moscow’s invasion of Ukraine. A new sanctions bill, supported by US Senator Lindsey Graham and reportedly endorsed by President Donald Trump, proposes imposing 500% tariffs on goods from countries that keep buying Russian oil — including major importers India and China.Senator Graham told ABC News that the bill already has 84 co-sponsors and is designed to weaken Russia’s war economy by targeting buyers of Russian oil and other goods. The legislation is expected to be brought to a vote after the US Congress returns from its July recess, with plans to move it forward in August.What The Bill ProposesA 500% tariff would apply to imports into the US from countries continuing significant trade with Russia.The goal is to force Russia to negotiate over Ukraine by cutting its war funding.The bill gives the US president authority to implement or waive these tariffs.Impact On IndiaIndia, the world’s third-largest oil importer, dramatically increased Russian oil purchases after the 2022 invasion of Ukraine — from less than 1% to around 40-44% of total crude imports. In recent months, India’s Russian oil imports have even surpassed volumes from traditional Middle Eastern suppliers.If the proposed bill passes and tariffs are enforced, Indian goods entering the US could face punishing duties. This could hurt India’s exports and disrupt trade ties with the US. However, ongoing discussions about a US-India trade deal could lead to adjustments in tariffs or exemptions.Trump Administration’s PositionReports suggest the Trump administration initially pushed to soften the bill’s language, shifting mandatory sanctions (“shall”) to discretionary (“may”) to avoid unintended fallout, especially with allies. The bill includes a waiver allowing the president to decide whether to enforce the tariffs, giving Trump leverage in negotiations with Russia and US trading partners.Russia’s ReactionKremlin spokesperson Dmitry Peskov dismissed Graham’s comments, calling him a known “Russophobe,” and questioned whether harsh sanctions would help resolve the Ukraine conflict.
