US Eyeing 500% Tariff On India, China? Trump-Backed Bill Targets Russia's Trade Partners

Last Updated:July 01, 2025, 20:31 IST

Donald Trump approved a Senate bill that targets nations buying Russian oil, including India and China.

US President Donald Trump (Reuters photo)

US President Donald Trump greenlit a Senate bill that may impose a 500 percent tariff on countries that continue to do business with Russia, including India and China, Republican Senator Lindsey Graham said. In an interview with ABC News, Lindsey Graham said, “If you’re buying products from Russia and you’re not helping Ukraine, then there’s a 500 percent tariff on your products coming into the United States. India and China buy 70 percent of Putin’s oil. They keep his war machine going."

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Lindsey Graham revealed that the bill, which he is co-sponsoring with Democratic Senator Richard Blumenthal, has 84 backers in the Senate and is expected to be introduced in August.

Trump’s Approval To Bill Came During A Golf Game

The Republican senator said Donald Trump’s backing came during a recent golf game, where the US President told him, “It’s time to move your bill." According to a report in the Wall Street Journal, the Donald Trump administration had previously urged Lindsey Graham to replace binding terms in the legislation- such as “shall"- with more discretionary wording like “may," to weaken its mandatory enforcement provisions.

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As Russia’s war in Ukraine enters its third year, US Secretary of State Marco Rubio said that the Trump administration remains wary of harming the broader peace process but sanctions are not being ruled out.

How The New Bill Could Impact India, China?

The proposed tariffs would most heavily affect India and China, which together account for roughly 70 percent of Russian oil purchases. India-Russia bilateral trade soared to an all-time high of $68.7 billion in the fiscal year 2024–25, marking a dramatic rise from the pre-pandemic figure of $10.1 billion. The surge has been largely fueled by India’s increased exports and substantial imports of Russian oil and other key commodities. With economic ties deepening, both nations have now set an ambitious target of $100 billion in bilateral trade by 2030.

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Washington D.C., United States of America (USA)

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