Trump Backs 500% Tariff Bill Targeting Russia: India at Risk

- The U.S. plans to enact legislation to penalise Russian oil buyers. - The agenda is to cut money to Russia and stop the war in Ukraine. - It's a trade dilemma for India, and it must choose.

Trump Backs 500% Tariff Bill Targeting Russia: India at Risk
Trump Backs 500% Tariff Bill Targeting Russia: India at Risk

The U.S. is ready for another round of massive tariffs, and this time it's 500%. It's not a routine sanction, but a new law to punish countries like India for buying oil and uranium from Russia. President Donald Trump gave the green signal to this move, and it's called the Graham–Blumenthal Russia Sanctions Bill. The move is supported by both political parties (bipartisan). The agenda is simple: to financially hurt Russia and end the four-year-long war in Ukraine. What does the bill exactly say? How could this impact India? For that, learn more. 

Senator Graham and Donald Trump - Image Credits - abc NEWS
Senator Graham and Donald Trump - Image Credits - abc NEWS

What exactly is the Graham–Blumenthal Russia Sanctions Bill?

The bill was penned by Lindsey Graham (Republican Senator) and Richard Blumenthal (Democratic Senator). It received bipartisan approval (meaning both political parties support). A Senate vote on the same could happen as early as next week. Once the bill is signed into law, Trump will be able to impose additional tariffs on countries, up to 500%.

The major targets are Russian oil, gas, uranium, and other exports. This will help stop the money that helps Russia fund its war in Ukraine.For the record, the White House asked for some changes in the bill. These changes would give Trump the flexibility to decide when and how sanctions are used. There's no official confirmation if the changes were made. 

Why do the U.S 500% tariffs matter to India?

India imports large volumes of oil from Russia, which is where the problem lies. In 2025, India bought around 35% of its oil from Russia. If this law passes, then goods from the U.S can become expensive and hurt trade and business big time. Although India has reduced its dependence on Russia for oil, a complete ban would also have adverse effects. 

What else is happening in parallel to the 500% tariff bill?

  • According to Senator Graham, President Vladimir Putin talks peace but never actually stops the violence.
  • The Trump administration is trying its best to negotiate peace between the countries (with negotiators Steve Witkoff and Jared Kushner).
  • However, Russia continued the war, so such bills are coming into effect.

Final Words… 

Peace or not, the U.S. is still going for the 500% tariff bill early next week. It's evident that the move is receiving wide support from both political parties. If the bill is to pass, it can put India in a trade dilemma (and great trouble). We'll have to wait and see how this goes in the Senate. 

Trump Imposes 26% Tariff on Indian Imports, Citing ‘Reciprocal’ Trade Policy
The steep new tariffs imposed on Indian products by the US government have generated worries about the state of trade ties between the two countries.
WIDGET: questionnaire | CAMPAIGN: Simple Questionnaire

Must have tools for startups - Recommended by StartupTalky

Read more

Daily Indian Funding Roundup & Key News – 9th January 2026

Daily Indian Funding Roundup & Key News – 9th January 2026: Myntra Waives Commissions, Groww Extends Lead, Skydo Gets RBI Nod & Reliance Jio Eyes IPO

India’s startup and corporate landscape witnessed a series of strategic developments on 8th January 2026, reflecting shifting market dynamics across e-commerce, fintech, broking, and telecom. From Myntra’s move to support emerging D2C brands through a zero-commission model to Groww strengthening its leadership in retail stock broking, the day

By StartupTalky News