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500% Tariffs on the Table: Trump Supports Bill Targeting India, China over Russian Oil Imports, Says US Senator Lindsey Graham
Moneylife Digital Team 08 January 2026
Economy & Nation
US president Donald Trump has backed a hardline bipartisan sanctions bill that would allow Washington to impose tariffs of up to 500% on countries purchasing Russian oil, significantly raising pressure on major buyers such as India, China and Brazil.
 
The development was confirmed by Republican senator Lindsey Graham, who says president Trump had 'greenlit' the proposed legislation following a meeting at the White House on Wednesday. The bill, formally titled the Sanctioning Russia Act, has been jointly drafted by Mr Graham and Democratic senator Richard Blumenthal.
 
“After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator Blumenthal and many others,” Mr Graham says in a post on X.
 
 
According to Mr Graham, the legislation would give the White House sweeping authority to impose secondary sanctions and punitive tariffs, potentially as high as 500%, on imports from countries that continue to do business with Russia’s energy sector.
 
“This bill will allow president Trump to punish those countries who buy cheap Russian oil, fuelling Putin’s war machine,” Mr Graham says. “It would give president Trump tremendous leverage against countries like China, India and Brazil to incentivise them to stop buying the cheap Russian oil that provides the financing for Putin’s bloodbath against Ukraine.”
 
India and China have emerged as the largest buyers of Russian crude since Western sanctions were imposed on Moscow following its invasion of Ukraine. According to analysis by the Centre for Research on Energy and Clean Air, China accounted for nearly half of Russia’s crude oil exports in November, while India bought about 38%. Brazil, which sharply increased imports after the war began in 2022, has reduced purchases in recent months.
 
A White House official confirmed to Associated Press (AP) that president Trump supports the sanctions legislation, though details on whether the administration has sought amendments or additional flexibility in the bill remain unclear. The White House has previously indicated that it wants room to calibrate sanctions as diplomatic negotiations evolve.
 
The use of tariffs as a sanctions tool has drawn mixed reactions from policy experts. Catherine Wolfram, a former US Treasury official involved in sanctions policy under the Biden administration, described the approach as largely untested.
 
“I worry that Russia and India will call the US government’s bluff and continue to import Russian oil, if perhaps at a slight discount, as the cost to the US of carrying through on the threat, especially in the middle of trade negotiations with China, is nontrivial,” Ms Wolfram told Al Jazeera.
 
The sanctions push comes amid renewed diplomatic efforts to end the nearly four-year war in Ukraine. The Trump administration has recently backed European proposals for binding security guarantees for Ukraine, including post-war monitoring and a European-led multinational force — measures that Russia has so far opposed.
 
Mr Graham says the timing of the legislation was deliberate. “This will be well-timed, as Ukraine is making concessions for peace and Putin is all talk, continuing to kill the innocent,” he added.
 
The bill has dozens of co-sponsors in the US Senate and a companion version in the House of Representatives, introduced by Congressman Brian Fitzpatrick. Mr Graham has indicated that a Senate vote could come as early as next week, though the legislative calendar remains crowded with government funding debates and an upcoming recess.
 
If passed, the legislation would mark one of the most aggressive US attempts yet to choke off Russia’s energy revenues and could significantly complicate trade and diplomatic ties with countries that have continued to buy discounted Russian oil despite Western sanctions.
 
Comments
himlynx
1 month ago
Interesting . The United States continues to purchase enriched uranium from Russia despite existing import bans. How much tariff will they impose on themselves ?
Reply
Economy & Nation
Cooperative Housing Societies Can Claim 80P Deduction on Interest from Coop Banks: ITAT
Moneylife Digital Team 22 December 2025
The Mumbai bench of the income tax appellate tribunal (ITAT) has allowed a cooperative housing society (CHS)’ claim for deduction on interest income earned from fixed deposits (FDs) placed with a cooperative bank, reiterating that...
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