Trump Backs Russia Sanctions Bill Posing 500% Tariff Threat To India: Report

The White House has backed a proposed sanctions bill that could expose India to tariffs of up to 500 per cent over its continued purchases of Russian oil.

Responding to a query from ANI, a White House official confirmed that US President Donald Trump is in favour of the legislation.

"President Trump supports the bill," the official said.

The proposal, known as the Sanctioning Russia Act, was introduced by late Republican Senator Lindsey Graham along with Democratic Senator Richard Blumenthal. If passed, it would give the US president the power to impose tariffs of up to 500 per cent on imports from countries that continue doing business with Russia's energy sector.

India Among Main Targets

Throughout his campaign for the bill, Graham repeatedly argued that the pressure should fall not only on Moscow but also on the countries keeping its energy revenues flowing. He frequently pointed to India and China, saying the two nations together account for nearly 70 per cent of Russia's oil, gas and petroleum exports.

According to Graham, cutting off this demand would increase economic pressure on Moscow and could help bring the war in Ukraine closer to an end.

If approved, the legislation would hand the US president one of the broadest powers ever granted by Congress to impose secondary tariffs on countries trading with Russia's energy industry.

The situation became more complicated after a temporary US Treasury waiver expired on June 17, 2026. The waiver had allowed India's purchase of Russian crude without attracting sanctions. Its expiry has left India's in a legal grey zone.

India's Economy Could Take A Hit

Economists have warned that if the full 500 per cent tariff is imposed, India's economy could take a hit, with estimates suggesting GDP could shrink by as much as 0.5 per cent.

Export-driven sectors such as pharmaceuticals, textiles and IT services are expected to be among the first to feel the impact.

India, however, has consistently maintained that its energy imports are driven by national economic needs and not by geopolitical considerations.

The bill has gathered fresh momentum following Graham's death, with several senators viewing its passage as a way to honour his work after he spent more than a year pushing for the legislation.

However, some Democrats, including Senate Minority Whip Dick Durbin, want Trump to publicly and directly endorse the proposal instead of relying on comments made by a White House official before moving ahead.

The bill has also faced resistance within the Republican Party. Senator Rand Paul has cautioned that imposing harsh penalties on countries like India and China for buying Russian oil could disrupt global trade and create wider economic instability.