The United States wants to tighten the screws on Russia’s economy by hitting its biggest oil customers with huge tariffs. A new Senate bill could bring a massive 500 per cent duty on goods from any country that keeps buying Russian oil and gas while not supporting Ukraine.
Senator Lindsey Graham told ABC News, “Big breakthrough here. So what does this bill do? 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.”
Trump’s nod and the waiver clause
Graham confirmed that former President Donald Trump has agreed to back the bill and wants it moved forward. Trump reportedly gave his green light during a round of golf. Graham said, “He says, ‘It's time to move -- move your bill. There's a waiver in the bill, Mr. President. You're in charge whether or not it's to be implemented.’ But we're going to give President Trump a tool in the toolbox he doesn't have today.”
The waiver means Trump, if returned to the White House, could choose not to enforce the tariff even if Congress passes it.
India’s oil imports shift after Ukraine war
When Russia invaded Ukraine in February 2022, global oil flows changed overnight. India, the world’s third biggest oil buyer, saw an opportunity. Russian crude came cheap. Western countries were pulling back, so India stepped up.
From less than 1 per cent of India’s crude imports before the invasion, Russian oil now makes up around 40-44 per cent. In May, India’s intake from Russia stood at 1.96 million barrels per day. By June, refiners planned to take in even more—about 2.2 million barrels daily, topping combined volumes from Saudi Arabia and Iraq.
Record India-Russia trade numbers
This trade shift shows up in the numbers too. India-Russia trade has ballooned to a record $68.7 billion in 2024–25, up sharply from just over $10 billion before the pandemic. Cheap oil is the main factor, but other commodities play a role too. Both sides now want to push trade beyond $100 billion by 2030.
What the tariffs could mean for Indian goods
If the 500 per cent tariff becomes law, Indian goods could face a punishing cost burden in US markets. That’s a big worry. India sells billions of dollars’ worth of goods to the US, its key trading partner.
At the same time, India and America are working on a new trade pact. Many in New Delhi hope the deal could reduce or offset other tariffs if the sanctions come in.
White House wanted softer line
Behind the scenes, there’s been push and pull. A Wall Street Journal report said Trump’s team earlier asked Graham to weaken the bill’s teeth by changing the word “shall” to “may”. That change would have made the tariffs optional, not automatic.
To calm nerves in Europe, Graham even suggested a carve-out for countries helping Ukraine. This was seen as an attempt to prevent a wider trade war.
Kremlin shrugs off Graham’s threat
Asked about Graham’s remarks, Kremlin spokesman Dmitry Peskov did not hold back. “The senator's views are well known to us, they are well known to the whole world. He belongs to a group of inveterate Russophobes. If it were up to him, these sanctions would have been imposed long ago,” Peskov said. He added, “Would that have helped the (Ukraine) settlement (process)? That is a question that those who initiate such events should ask themselves.”
Graham’s bill has 84 co-sponsors and could come up in the Senate after the “July break”, likely in August. For India, the next few months will be crucial. Balancing cheap oil from Russia with a stable trade path to the US is not going to be easy.
Senator Lindsey Graham told ABC News, “Big breakthrough here. So what does this bill do? 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.”
Trump’s nod and the waiver clause
Graham confirmed that former President Donald Trump has agreed to back the bill and wants it moved forward. Trump reportedly gave his green light during a round of golf. Graham said, “He says, ‘It's time to move -- move your bill. There's a waiver in the bill, Mr. President. You're in charge whether or not it's to be implemented.’ But we're going to give President Trump a tool in the toolbox he doesn't have today.”
The waiver means Trump, if returned to the White House, could choose not to enforce the tariff even if Congress passes it.
India’s oil imports shift after Ukraine war
When Russia invaded Ukraine in February 2022, global oil flows changed overnight. India, the world’s third biggest oil buyer, saw an opportunity. Russian crude came cheap. Western countries were pulling back, so India stepped up.
From less than 1 per cent of India’s crude imports before the invasion, Russian oil now makes up around 40-44 per cent. In May, India’s intake from Russia stood at 1.96 million barrels per day. By June, refiners planned to take in even more—about 2.2 million barrels daily, topping combined volumes from Saudi Arabia and Iraq.
Record India-Russia trade numbers
This trade shift shows up in the numbers too. India-Russia trade has ballooned to a record $68.7 billion in 2024–25, up sharply from just over $10 billion before the pandemic. Cheap oil is the main factor, but other commodities play a role too. Both sides now want to push trade beyond $100 billion by 2030.
What the tariffs could mean for Indian goods
If the 500 per cent tariff becomes law, Indian goods could face a punishing cost burden in US markets. That’s a big worry. India sells billions of dollars’ worth of goods to the US, its key trading partner.
At the same time, India and America are working on a new trade pact. Many in New Delhi hope the deal could reduce or offset other tariffs if the sanctions come in.
White House wanted softer line
Behind the scenes, there’s been push and pull. A Wall Street Journal report said Trump’s team earlier asked Graham to weaken the bill’s teeth by changing the word “shall” to “may”. That change would have made the tariffs optional, not automatic.
To calm nerves in Europe, Graham even suggested a carve-out for countries helping Ukraine. This was seen as an attempt to prevent a wider trade war.
Kremlin shrugs off Graham’s threat
Asked about Graham’s remarks, Kremlin spokesman Dmitry Peskov did not hold back. “The senator's views are well known to us, they are well known to the whole world. He belongs to a group of inveterate Russophobes. If it were up to him, these sanctions would have been imposed long ago,” Peskov said. He added, “Would that have helped the (Ukraine) settlement (process)? That is a question that those who initiate such events should ask themselves.”
Graham’s bill has 84 co-sponsors and could come up in the Senate after the “July break”, likely in August. For India, the next few months will be crucial. Balancing cheap oil from Russia with a stable trade path to the US is not going to be easy.
You may also like
Congress 'unity show' flatlines? DK Shivakumar backs Siddaramaiah, cites 'no option'
Keshav Maharaj Ruled Out Of Second Test Against Zimbabwe With Groin Strain
Melbourne to Brisbane: Snake found on board; Virgin Australia flight delayed by 2 hours
'Kannadiga friends fed me...': Man shares how 3 years in Bengaluru made him fall in love with 'India's best city for middle-class life'
TN BJP chief lists 23 cases of custodial death, asks for CM Stalin's apology
