Trump-Backed Bill Could Hit India, China With 500% Tariffs Over Russia Ties

 Trump-Backed Bill Could Hit India, China With 500% Tariffs Over Russia Ties

In a bold move that could shake up global trade dynamics, former U.S. President Donald Trump has given his backing to a Senate bill that would impose massive 500% tariffs on countries that continue to do business with Russia — including key partners like India and China.

Republican Senator Lindsey Graham, a chief sponsor of the bill, revealed in a recent interview that the legislation already has 84 co-sponsors in the Senate. The bill targets nations purchasing oil and other goods from Russia, arguing that such trade fuels President Vladimir Putin’s war machine in Ukraine.

“If you’re buying from Russia and not helping Ukraine, you’ll face a 500% tariff on your goods coming into the U.S.,” said Graham. “India and China are buying 70% of Putin’s oil — they’re keeping the war going.”

According to Graham, Trump personally gave the green light for the bill to move forward. “I was golfing with him, and he said, ‘It’s time to move your bill,’” Graham told reporters.

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The Aim: Squeeze Putin’s War Chest

The bill is designed to increase pressure on Russia by making it costly for major economies to maintain trade ties with Moscow. India and China, which have continued importing discounted Russian oil despite Western sanctions, are key targets of the legislation.

Initially introduced in March, the bill had been on hold after the Trump administration expressed concerns about escalating sanctions. However, that position appears to have shifted, with the White House now showing signs of support — though some officials are reportedly urging a more flexible approach.

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Pushback and Tweaks Expected

The bill is bipartisan, co-sponsored by Democrat Richard Blumenthal, but it’s already facing internal debate. Reports from The Wall Street Journal suggest that the administration has been pressuring Graham to make the bill less rigid — by changing words like “shall” to “may,” turning the mandatory penalties into optional ones.

Graham has also hinted at possible exceptions for countries that are actively supporting Ukraine — a move aimed at avoiding a trade fallout with U.S. allies in Europe.

Trump himself has sent mixed signals. While he’s reportedly supportive, he told Politico last month, “Sanctions cost us a lot of money,” suggesting that economic consequences for the U.S. will be taken into account.

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What This Means for India

If the bill is passed in its current form, India could face steep trade penalties, especially given its continued imports of Russian oil. The U.S. is one of India’s largest export markets, and such a dramatic shift in tariffs could significantly impact Indian businesses and broader diplomatic ties between Washington and New Delhi.

This legislation — if enacted — would mark a turning point in U.S. foreign and trade policy, with wide-ranging implications not just for India and China, but for the global economy.