Trump Okays 500% Tariff Bill on Russia; Targets India, China, Brazil

President Donald Trump has approved a bill proposing a sweeping 500% tariff on Russian exports to the US and penalising countries such as India, China, and Brazil that continue to purchase Russian oil. It is part of the measure named the Sanctioning of Russia Act 2025.

Graham says Trump gave "green light"
Senator Lindsey Graham, who is leading the push for the bill, said Trump had agreed to move forward after a meeting in Washington. In an X post, Graham wrote, "After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator Blumenthal and many others."
Graham explained that the timing was significant, noting that Ukraine is making concessions in peace talks while Russia continues military action. "This bill will allow President Trump to punish those countries who buy cheap Russian oil fuelling Putin's war machine," he said, adding that it would give Trump "tremendous leverage" over India, China and Brazil.

What the bill says
According to the US Congress website, the Sanctioning of Russia Act 2025 includes wide-ranging penalties on individuals and companies linked to Russia. Its most striking clause is the plan to raise import duties on Russian goods and services to at least 500 per cent of their value.

Next steps
Senator Graham stated that a bipartisan vote on the bill could occur as early as next week. 'Bipartisan' here means support from both major political parties in the US – Republican and Democrat. If passed, the legislation would give Trump broad authority to impose heavy tariffs and sanctions.
The proposal is expected to trigger strong reactions from countries like India, China and Brazil, which all rely on affordable Russian oil. For them, the new tariffs could mean higher costs and strained relations with Washington.

More US Tariffs on India
Trump has already imposed tariffs of 50 per cent on Indian goods, arguing that India's oil imports from Russia indirectly support Moscow's economy. He warned that Washington could raise tariffs further if India does not reduce its purchases of Russian crude.

Speaking at the House GOP Member Retreat, Trump said, "I have a very good relationship with PM Modi, but he is not happy with me as India is paying high tariffs." He added, "They wanted to make me happy, basically. Modi is a very good man; he is a good guy."

Trump claimed that India had reduced buying Russian oil "very substantially" but suggested that more steps were needed.

The Indian government has refuted Trump's claim that Prime Minister Narendra Modi had assured him that New Delhi would cease purchasing Russian oil. Officials clarified that no such conversation or commitment had taken place.

India has consistently explained that its energy policy is guided by national interest and affordability. With global fuel prices unstable, discounted Russian crude has helped India manage costs and keep domestic prices under control.

Peace talks and US delegation visit
The sanctions debate comes at a time when Ukraine is exploring peace negotiations. On January 7, Ukrainian President Volodymyr Zelenskyy met a US delegation that included Steve Witkoff and Jared Kushner. The discussions focused on diplomatic ways to end the war, signalling renewed efforts to push Russia toward talks.