US Considers 500% Tariffs On India Over Russian Oil
US considers 500% tariffs on India over Russian oil imports, raising trade and diplomatic concerns.
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The United States is considering imposing tariffs of up to 500% on Indian goods as part of a new sanctions bill targeting countries that continue to import Russian oil. India is already subject to a 50% tariff on its exports to the US, following earlier increases linked to its energy trade with Russia. The proposed legislation, if enacted, would significantly escalate trade tensions and impact India’s export sectors.
According to Hindustan Times, US President Donald Trump has approved a bipartisan bill that would mandate at least 500% tariffs on goods and services from countries importing Russian-origin petroleum and uranium. The bill, championed by Senator Lindsey Graham, is designed to pressure nations like India, China, and Brazil to reduce their purchases of Russian oil, which the US administration argues is funding Russia’s war in Ukraine.
As reported by The Indian Express, the bill’s provisions would give the US President significant leverage to impose punitive tariffs and secondary sanctions on countries buying Russian energy. Indian officials have communicated to US lawmakers that New Delhi has already reduced its Russian oil imports, and discussions are ongoing to seek relief from the current tariff regime.
As highlighted by Deccan Herald, the Sanctioning of Russia Act 2025 would penalise countries that knowingly engage in trade involving Russian-origin energy products. India, as the second-largest buyer of Russian oil after China, has been specifically named as a target for these proposed measures. The bill is expected to move forward in the US Congress, with a bipartisan vote anticipated soon.
Coverage revealed that India’s Russian oil imports have declined in recent months, with official data showing an 18% drop between April and October 2025 compared to the previous year. Despite this reduction, the US administration maintains that further action is necessary to curtail Russia’s revenue streams.
India’s export sectors have experienced mixed impacts from the existing tariffs. Analysis showed that while exports of certain goods like pearls, precious stones, and gold jewellery to the US have declined sharply, other sectors such as telecom instruments and electrical machinery have seen growth. Indian exporters have also diversified into new markets, with increased shipments to Europe and China helping to offset losses in the US market.
India’s government projects a GDP growth rate of 7.4% for FY26, reflecting economic resilience despite tariff pressures. Reporting indicated that private consumption and investment remain strong, and the manufacturing sector is expected to expand by 7% year-on-year.
“Prime Minister Modi’s a very good man. He’s a good guy. He knew I was not happy. It was important to make me happy. They do trade, and we can raise tariffs on them very quickly,” Donald Trump stated, as quoted in multiple sources.
Diplomatic exchanges have reflected the strain caused by the tariff increases. Following reports, Prime Minister Narendra Modi has expressed dissatisfaction with the tariffs, while the Indian government has emphasised its commitment to stable energy prices and secure supplies. India has also denied claims that it promised to cease Russian oil purchases in exchange for tariff relief.
US officials have reiterated that tariff pressure is intended to influence India’s energy policy. The ongoing negotiations for a comprehensive India-US trade deal remain unresolved, and the possibility of further tariff hikes continues to create uncertainty for Indian exporters as details emerged.
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.