New delhi,A Proposes 500% Tariff on Countries Trading with Russia, Posing Challenge for India and China – A proposed bipartisan bill in the U.S. Senate, backed by President Donald Trump, could impose a staggering 500% tariff on countries, including India and China, that continue to purchase Russian oil. The measure aims to further isolate Russia and compel it towards peace negotiations in Ukraine, but it threatens significant diplomatic and economic repercussions for key partners like India, even as New Delhi engages in ongoing trade deal discussions with the United States.
Republican Senator Lindsey Graham revealed details of the forthcoming legislation in an interview with ABC News. “If you buy products from Russia and don’t help Ukraine, your products coming into America will have a 500% tariff on them. India and China are buying 70% of Putin’s oil. They are keeping his war machine going,” Graham stated, according to ABC News. The bill, which reportedly shows a significant escalation in U.S. efforts to financially cripple Russia, is expected to be introduced in August.
Should the bill pass, it would severely impact India and China, currently the largest discounted buyers of Russian crude oil. For India, this move could also lead to tariffs on its exports, including pharmaceuticals, textiles, and IT services, vital sectors of its economy.
India has emerged as a major purchaser of Russian oil, importing crude worth €49 billion in the third year of the Ukraine invasion. Historically, India sourced its oil primarily from the Middle East, but it significantly increased imports from Russia following the invasion of Ukraine in February 2022.
This development unfolds against the backdrop of eagerly anticipated India-U.S. bilateral trade deal negotiations. Sources told India Today that U.S. Treasury Secretary Scott Besant stated on Tuesday that a trade deal was “very close,” even as Indian delegations continue discussions with U.S. officials in Washington to resolve sticking points, particularly concerning key agricultural demands.
The proposed bill, introduced by Senators Graham and Democratic Senator Richard Blumenthal, reportedly has 84 co-sponsors. Its primary objectives are to pressure nations to halt Russian oil purchases, weaken “Moscow’s war economy,” and push for peace talks in Ukraine.
Senator Graham further disclosed that he received a “green light” from President Donald Trump during a recent golf game. “Yesterday was the first time the President told me, I was playing golf with him, he says, ‘Time to move your bill,'” Graham told ABC News.
