Donald Trump is considering imposing a 500% tariff on countries purchasing oil from Russia, which could significantly impact trade for countries like India and China.
Trump Tariff: Former US President Donald Trump has signaled a tough stance on countries buying energy from Russia. He has made it clear that countries purchasing energy products like oil, gas, or uranium from Russia could face import duties of up to 500%. This proposed move could directly affect countries like India and China, which import large quantities of crude oil from Russia.
Trump's Strategy: Putting Pressure on Putin
Donald Trump has recently criticized Russian President Vladimir Putin and expressed displeasure over the Ukraine war. His aim now is to limit Russia's energy revenue to put pressure on Putin to end the war. Trump believes that the Ukraine war can only be stopped by financially crippling Russia's energy sales.
'Sanctioning Russia Act of 2025' What is it?
This proposed law was introduced in April 2025 in the US Senate by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal. It includes three major provisions:
- Strict restrictions on Russia's global energy supply.
- Economic sanctions on Russian companies and government officials.
- A 500% tariff on countries that purchase energy products from Russia.
Trump, supporting this proposal, has stated that regardless of whether Congress passes this bill or not, he is free to implement it on his own and is seriously considering it.
Trump's Changed Ukraine Policy
Trump is usually cautious about interfering in America's foreign policy. However, in recent developments, he has directed more military aid to Ukraine. According to a report by the Associated Press, this stance of Trump's indicates a significant shift in his approach to the Ukraine war.
Senator Graham's Statement: This law is a 'breakthrough'
Senator Lindsey Graham has called this proposed law a crucial 'breakthrough' against Russia. He stated that if any country is buying energy from Russia and is not supporting Ukraine, that country will have to pay an import duty of up to 500% on its products in the United States.
What will be the impact on India and China?
India and China are among the major oil-buying countries from Russia. If this law is passed and Trump implements it, both countries may have to pay hefty duties on their products when sending them to the US. India has b trade relations with the United States, and this move could deepen trade tensions between the two countries.
India is currently buying oil from Russia at discounted rates, reducing its energy costs. But if this US law is implemented, India will face a double pressure — the facility of buying cheap oil from Russia and the increasing tariff on exports to the US.
Trump has announced tariffs before as well
Trump has recently announced tariffs on other countries as well. For example:
- 50% tariff on Brazil.
- 35% tariff on Canada.
- New duties on the Philippines, Moldova, Sri Lanka, Libya and 7 other countries.
Trump has also made it clear that these tariffs will be effective from August 1, 2025.
Why is this US policy important?
Russia's energy revenue is a major source of income for the country's economy and military operations. The United States believes that if Russia's energy purchases are reduced globally, the war can be financially weakened. That is why the US is attempting to economically penalize countries that buy oil and gas from Russia.
