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Trump backs Russia sanctions bill: Up to 500% tariffs on India, China?

President Trump has approved a bipartisan Russia sanctions bill, giving the US authority to target major buyers of Russian oil, including India, China, and Brazil, with duties of up to 500%.

January 08, 2026 / 11:21 IST
Trump backs Russia sanctions bill targeting oil buyers, ‘leverage against China, India’: Senator Lindsey Graham
Snapshot AI
  • Trump approves bill targeting buyers of Russian oil, including India, China, Brazil
  • Sanctioning of Russia Act 2025 may be voted on in Congress as early as next week
  • Bill lets US president penalize nations buying discounted Russian oil.

US President Donald Trump has approved moving forward with a bipartisan sanctions bill that proposes tariffs of up to 500 percent on countries continuing to do business with Russia, including major buyers of Russian oil such as India, China, and Brazil, according to Republican Senator Lindsey Graham.

Details published on the US Congress website show that the proposed legislation would also impose penalties on individuals and entities and sharply increase duties on all goods and services imported from Russia into the United States to a minimum of 500 percent, signalling a significant escalation in economic pressure.

Graham said the bill would give Washington added leverage over countries “fueling Putin’s war machine” by purchasing Russian oil. He added that the legislation, cleared by Trump, could be taken up for a bipartisan vote as early as next week, as diplomatic efforts to end the war in Ukraine continue.

The legislation, titled the Sanctioning of Russia Act 2025, could be brought to a vote in Congress as early as next week. Graham said Trump gave the green light during a meeting between the two earlier in the day.

“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,” Graham wrote on X.

According to Graham, the bill would give the US president broader authority to penalise countries purchasing discounted Russian oil, which Washington argues is helping finance Moscow’s war in Ukraine. “This bill will allow President Trump to punish those countries that buy cheap Russian oil, fueling Putin’s war machine,” he said, naming China, India, and Brazil as potential targets.

The proposed legislation has been in the works for months but was not previously brought to a vote, as Trump had favoured using tariffs, particularly on Indian goods, rather than sweeping sanctions. A US official told Reuters in November that Trump would sign the bill if it passed, provided it included language ensuring the president retained control over how sanctions are applied.

Graham said he expects strong bipartisan backing for the measure. “I look forward to a strong bipartisan vote, hopefully as early as next week,” he said.

The move comes as diplomatic efforts to end the nearly four-year war in Ukraine gather pace. On Tuesday, the United States joined a group of Ukraine’s allies in pledging security guarantees that include binding commitments to defend the country if Russia launches another attack. Graham said the timing of the bill was significant, adding, “This will be well-timed, as Ukraine is making concessions for peace, and Putin is all talk, continuing to kill the innocent.”

Russia, however, has shown no public willingness to compromise, despite Kyiv seeking changes to earlier US proposals that initially reflected Moscow’s demands.

The sanctions push also intersects with rising trade tensions between Washington and New Delhi. Trump has repeatedly warned that India could face higher tariffs over its continued purchase of Russian oil. The United States has already imposed tariffs of up to 50 percent on certain Indian goods, partly linked to those imports.

“I have a very good relationship with PM Modi, but he is not happy with me as India is paying high tariffs. But now they have reduced it very substantially, buying oil from Russia,” Trump said recently.

India has rejected claims that Prime Minister Narendra Modi promised to stop buying Russian oil, maintaining that its energy purchases are guided by national interest and energy security.

India and Russia have long-standing ties, particularly in defence and energy. While India remains one of the largest buyers of seaborne Russian oil, its imports are expected to fall to a three-year low this month amid higher US tariffs and tighter sanctions.

Moneycontrol World Desk
first published: Jan 8, 2026 07:52 am

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