Donald Trump backs US bill targeting Russian oil buyers — what it could mean for India’s trade ties may soon be decided

A Trump-backed bipartisan sanctions bill could soon allow the United States to impose steep tariffs on countries that continue to buy Russian oil, with India and China among the most exposed. The legislation, cleared by President Donald Trump, may be put to a vote as early as next week and could raise US tariffs by up to 500 per cent.

The bill is being positioned as a tool to pressure countries into cutting purchases of discounted Russian oil, which Washington says helps finance Russia’s war in Ukraine. If passed, it would significantly impact trade ties between the US and some of its key global partners.

Republican Senator Lindsey Graham confirmed in a post on X that President Trump had approved the proposed legislation following what he described as a “productive” meeting between the two. According to Graham, the bill could reach the Senate floor as early as next week.

The legislation, sponsored by Graham along with Democratic Senator Richard Blumenthal, would give the US President broad authority to act against countries that “knowingly” purchase oil from Russia. It also includes provisions to sanction nations buying Russian uranium.

Graham said the bill would provide President Trump with “tremendous leverage” over countries such as India, China and Brazil, encouraging them to move away from Russian energy supplies.

Explaining the timing of the bill, Graham said Ukraine is currently making concessions toward peace, while Russian President Vladimir Putin continues military action. He stated that the legislation would allow President Trump to “punish” countries purchasing cheap Russian oil that fuels Moscow’s war effort.

The bill also proposes banning US exports of energy products to Russia and blocking investments in the Russian energy sector. However, congressional leaders in both the Senate and the House have delayed a vote after Trump indicated a preference for using tariffs instead of immediate sanctions.

India, the world’s second-largest buyer of Russian oil after China, has already faced tariff action from the US under Trump. Last year, the President imposed a 25 per cent reciprocal tariff on Indian imports, along with an additional 25 per cent penalty tied specifically to India’s Russian oil purchases.

This pushed total duties on some Indian products to as high as 50 per cent, a move that sharply strained relations between New Delhi and Washington.

China also faced a similar escalation, with the US imposing tariffs of up to 145 per cent on Chinese goods. Beijing responded by levying duties of 125 per cent on American imports, further worsening bilateral trade ties.

In recent months, President Trump has repeatedly hinted at fresh tariff action against India over its continued purchase of Russian oil. Over the weekend, speaking to reporters aboard Air Force One, Trump said Prime Minister Narendra Modi “knew I was not happy.”

Trump added, “PM Modi's a very good man. He's a good guy. It was important to make me happy. They do trade, and we can raise tariffs on them very quickly.”

Late last month, Trump also threatened new tariffs on Indian rice after a farmer representative at a White House roundtable accused India, China and Thailand of dumping agricultural products in the US market.

Efforts to resolve the broader tariff dispute between India and the US have stalled. Washington has been pushing New Delhi to lower import duties on American agricultural products.

India, however, has remained firm in protecting its domestic farming and dairy sectors, which it considers politically and economically sensitive. With talks at an impasse and a Senate vote on the sanctions bill approaching, trade tensions between the two countries could intensify further.

If passed, the Trump-backed legislation could mark a major escalation in the US approach toward countries continuing energy trade with Russia.