President Donald Trump has signaled his support for the bipartisan Russia sanctions bill introduced by Senator Lindsey Graham, opening the door to a dramatic escalation in trade penalties. If the proposal moves forward, it could trigger US tariffs on Indian goods soaring to as much as 500%, a staggering jump from the already steep 50% rate.
The legislation, formally titled the Sanctioning Russia Act, 2025, was introduced by Graham with the stated aim of tightening the economic screws on Moscow. Here’s a clear breakdown of what the bill proposes and why it has set off alarm bells far beyond Russia.
What is the Sanctioning Russia Act of 2025?
From a US standpoint, the Sanctioning Russia Act of 2025 gives the administration sweeping powers to impose tariffs and secondary sanctions on countries that continue buying Russian oil, gas, uranium, and other exports. That net extends to major buyers such as India and China, which could face tariffs as high as 500% if the legislation becomes law.
According to the Trump administration, the goal is to tighten economic pressure on Moscow in order to force an end to its war in Ukraine.
Senator Lindsey Graham, along with Democrat Richard Blumenthal, introduced the Act to target not just Moscow but also countries doing business with it. The legislation calls for secondary tariffs and sanctions on “countries that continue to fund Putin’s barbaric war in Ukraine.”
READ: Trump tariffs have thrown off global trade: Will it change in 2026? (
At the core of the proposal is a sweeping 500% tariff on the secondary purchase and resale of Russian oil. The bill has drawn rare bipartisan backing, with nearly every member of the Senate Foreign Relations Committee signing on as a co-sponsor. “The President must increase the rate of duty on all goods and services imported from Russia into the United States to at least 500% relative to the value of such goods and services,” the legislation states.
The measure goes further, extending those penalties to third countries. “The President must increase the rate of duty on all goods and services imported into the United States from countries that knowingly engage in the exchange of Russian-origin uranium and petroleum products to at least 500% relative to the value of such goods and services,” the bill adds.
The bill also targets the financial system underpinning Russia’s economy. It mandates that “the Department of the Treasury must impose property-blocking sanctions on any financial institution organized under Russian law and owned wholly or partly by Russia, and any financial institution that engages in transactions with those entities.”
At the same time, the April 2025 version of the legislation builds in limited flexibility for the White House. It allows the President to “waive the 500% tariffs for a period of up to 180 days with respect to a country, good or service if he determines it is in the national interest of the United States.”
How this Russia Act would affect India
Speaking on Wednesday, Senator Lindsey Graham said the bill would arm the White House with “tremendous leverage” over countries such as China, India and Brazil, pressuring them to halt purchases of Russian oil. The renewed push around the sanctions legislation comes just days after the US seized a Russian-flagged oil tanker, the Marinera, even as Washington continues talks with Moscow aimed at ending the war in Ukraine.
Confirming President Trump’s backing, Graham wrote on X, “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.”
READ: ‘I wasn’t happy’: Trump warns of new tariffs on India over Russian oil imports (
If the Russia sanctions bill clears the US Congress, the direct fallout for India would be significant. New Delhi is already facing steep Trump-era tariffs of around 50% on most of its exports to the US. Under the new legislation, however, the administration would have the authority to impose a punitive 500% tariff on selected Indian goods, depending on how the policy is enforced at the time.
That intent was made clear in a joint statement issued last year by Senators Lindsey Graham and Richard Blumenthal, the architects of the bill. “President Trump and his team have made a powerful move, implementing a new approach to end this bloodbath between Russia and Ukraine…However, the ultimate hammer to bring about the end of this war will be tariffs against countries, like China, India and Brazil, that prop up Putin’s war machine by purchasing cheap Russian oil and gas,” the statement said.
India has long been one of the world’s largest buyers of Russian oil and has already been hit with an extra 25% in US tariffs since August 2025, bringing the total levy on its exports to 50%.
If the new bill becomes law, the proposed 500% tariff would represent a tenfold increase, potentially dealing a heavy blow to Indian exporters who are already facing a slowdown across multiple sectors.
The bill could sharply reduce the competitiveness of Indian exports in the US market, hitting key sectors such as textiles, pharmaceuticals, engineering goods, and gems and jewelry. Businesses may also face disruptions to long-term trade contracts, while investor confidence could take a significant hit amid the uncertainty.
Experts also warn that the legislation could complicate broader India-US relations, especially as the two countries continue negotiations on a potential trade deal. Earlier, Donald Trump acknowledged the tension, noting that Prime Minister Narendra Modi was unhappy about the existing US tariffs on India.