US President Donald Trump has confirmed his support for the proposed sanctions bill that could expose India to tariffs of up to 500% over its continued purchases of Russian oil. According to reports from ANI, a White House official confirmed that President Trump supports the legislation, providing crucial backing for the proposed sanctions framework. The bill, titled the Sanctioning Russia Act, was introduced by late Republican Sen. Lindsey Graham along with Democratic Sen. Richard Blumenthal, targeting countries that continue to do business with Russia's energy sector. The legislation would authorise 500% secondary tariffs on buyers of Russian energy, and if enacted, would represent the most sweeping secondary tariff authority over third-country trade Congress has ever granted a president. However, recent reports suggest the revised bill would empower the President to impose tariffs of up to 100% on the five largest purchasers of Russian energy, while permitting selective waivers, providing room for diplomatic maneuvering.
Senator Graham had repeatedly identified India and China as the primary targets of the proposed legislation, stating that the two countries together account for nearly 70% of Russia's oil, gas and petroleum exports. As reported by ANI, Graham argues that reducing demand from these major buyers would increase economic pressure on Moscow and could help bring the war in Ukraine closer to an end. If Congress passes the bill, it would grant the US president one of the broadest authorities ever provided by lawmakers to impose secondary tariffs on countries trading with Russia's energy industry. The bill's real focus is to hit the customers of Putin, with Graham believing that the war would end when economic pressure forced these buyers to turn on Moscow.
Indian refiners have demonstrated responsiveness to the sanctions pressure by sharply cutting back Russian crude imports earlier this year amid bilateral trade talks with Washington and US sanctions on Russian oil producers. According to Kpler data, Russian crude imports dropped from roughly 1.84 million barrels a day in November 2025 to about 1.04 million barrels a day by February 2026. However, the situation has become more complicated after a temporary waiver issued by the US Treasury expired on June 17, 2026. The waiver had allowed India to continue purchasing Russian crude without triggering sanctions, leaving the country's current purchasing position in what observers describe as a legal grey area. India has diversified crude supplies across Russia, the Gulf, the United States, Latin America and Africa, providing flexibility but not immunity from potential disruptions.
Economists estimate that a full 500% tariff scenario could shave up to 0.5% off India's GDP, with export-oriented industries including pharmaceuticals, textiles and IT services facing the most immediate disruption. As reported by ANI, these sectors are major US export earners and are expected to be among the first to face impact if the proposed tariffs are implemented. India, however, has consistently maintained that its energy imports are driven by national economic needs and not by geopolitical considerations. The legislation faces opposition within the Republican Party, with Senator Rand Paul warning that penalising China and India over Russian oil purchases would cause major disruption to trade and pose serious risks to the global economy. Democrats, including Senate Minority Whip Dick Durbin, want Trump to personally and forcefully endorse the bill before the Senate moves forward.
India's best defense strategy involves discreet diplomacy and measured public statements while engaging back-channel channels with the White House, congressional leaders and influential business constituencies. As reported by Business Standard, India should explain that punitive tariffs would disrupt supply chains, raise costs for US importers and complicate ongoing trade negotiations without materially influencing Moscow's conduct. The government has already provided targeted insurance and credit support to exporters, with any additional relief confined to exporters facing demonstrable increases in freight and insurance costs. The immediate priority must be diplomacy, while India cannot determine what Congress enacts or how West Asian hostilities unfold. The proposed law would add another coercive instrument to Washington's trade arsenal, with the US action against Brazil showing the range of such instruments, including additional 25% tariffs on Brazilian goods over various policy disputes.
