Home International India Faces Possible 50%–500% Tariff Shock as Trump ‘Favours’ Russia Sanctions Move

India Faces Possible 50%–500% Tariff Shock as Trump ‘Favours’ Russia Sanctions Move

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Trump India
Trump India

US President Donald Trump has stepped up his push to bring the war in Ukraine to an end by backing a new sanctions push against Russia that could also hit countries doing business with Moscow, including India. Trump has approved a proposed law that would sharply expand penalties not just on Russia but on its key trade partners as well.

Republican Senator Lindsey Graham confirmed that the President has cleared a bipartisan sanctions bill targeting Russia. Speaking to reporters, Graham said he expects the legislation to be put to a vote soon, possibly as early as next week. He described his recent meeting with Trump as productive and said the President had given the go ahead for the bill to move forward.

Graham explained that the proposed law would give Trump broad authority to act against countries that continue to buy discounted Russian oil, arguing that such trade helps sustain Moscow’s war effort. India features prominently among the nations likely to be affected, as it remains one of the major buyers of Russian crude and is already facing elevated tariffs from the United States.

In August 2025, Trump imposed an additional 25 percent tariff on Indian imports, calling it a penalty for New Delhi’s continued purchase of Russian oil. That move pushed total US tariffs on Indian goods to 50 percent. Other major economies such as China and Brazil are also expected to face scrutiny under the same framework, in line with Trump’s earlier warnings to BRICS nations.

What the proposed sanctions law includes

The proposed Sanctioning Russia Act of 2025 is designed to target individuals and countries that the US President determines are acting in line with Russian interests or blocking efforts to reach a peace settlement in Ukraine. The bill outlines four scenarios under which sanctions could be imposed. These include refusing to engage in peace talks with Ukraine, breaching a negotiated peace agreement, launching a fresh invasion of Ukraine, or attempting to undermine or overthrow the Ukrainian government.

If a person or country falls under any of these categories, the legislation directs the President to impose a range of penalties. These include visa restrictions and tariffs that could go as high as 500 percent. The bill also calls on the US Treasury to freeze assets and on the Commerce Department to halt the export or transfer of US produced energy products to or within Russia.

What this means for India

India is already among the countries facing the steepest US tariffs. During Trump’s so called Liberation Day trade actions in 2025, Washington rolled out fresh duties on multiple trading partners. India was initially hit with a 25 percent tariff, which was later doubled after Trump accused New Delhi of indirectly supporting Russia’s war by continuing to buy its oil.

As a result, India now faces a total tariff burden of 50 percent on exports to the United States, placing it alongside Brazil among the hardest hit nations. With the start of 2026, Trump has also signalled that tariffs on India could rise further, again pointing to its ongoing energy trade with Russia.

Speaking to reporters aboard Air Force One, Trump said Prime Minister Narendra Modi understood his displeasure over the issue. He described Modi as a good leader but added that the United States could raise tariffs on India very quickly because of its trade ties with Russia.

If the new sanctions bill becomes law, Trump would be required to impose tariffs of at least 500 percent on all goods and services imported into the United States from countries that knowingly trade in Russian origin uranium and petroleum products. This provision could significantly escalate economic pressure on India if it continues to import Russian energy.

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