Will India face a 500% tariff? Bill coming to US Congress next week

Washington: The US could further increase its pressure on India and China over oil purchases from Russia. Republican Senator Lindsey Graham has claimed that President Donald Trump has given the green light to a bipartisan bill that would allow for sanctions against countries buying oil and uranium from Russia.

Senator Graham stated on the social media platform X that the bill was approved after his recent meeting with President Trump. He said the bill could be brought up for a vote next week.

Tariff could increase by up to 500%
Under this proposed law, the US could increase import duties (tariffs) on countries like India and China by up to 500 percent. India and China are currently among the largest buyers of Russian oil at discounted rates. The US alleges that these oil purchases are providing financial support to the Russia-Ukraine war.

The bill is sponsored by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal. According to Graham, this will give President Trump the power to exert tremendous pressure on countries like India, China, and Brazil to stop buying Russian oil. Graham said Ukraine is making concessions for peace, but Putin is only talking. This bill will help punish countries that are fueling Putin’s war machine by buying cheap Russian oil.

Voting had been postponed earlier
However, the Senate and House leadership had previously postponed voting on this bill. This was because President Trump had indicated that he considered imposing tariffs directly on goods imported from India to be more effective. India is the world’s second-largest buyer of Russian oil, while China is the largest.

Tariffs have been increased before
It is worth noting that last year, Trump imposed a 25% reciprocal tariff on India, along with an additional 25% penalty for purchasing Russian oil. This brought the total duty on some Indian products to 50%, straining relations between New Delhi and Washington. America’s trade relations with China have also deteriorated. The US imposed tariffs of up to 145% on Chinese goods, in response to which China levied a 125% duty on American products. The new sanctions bill could further deepen this conflict.