US-India Trade Tensions Rise Amid Talk of 500% Tariffs
US President Donald Trump is once again preparing to impose tariffs on India. He recently signed a bill that allows Washington to impose hefty tariffs on countries that purchase Russian petroleum products. Following the passage of this bill, India, which buys oil from Russia, could face tariffs of up to 500%. Trump’s move has further strained relations between India and the United States.
The bill imposing tariffs on countries that buy oil from Russia is called the Sanctioning Russia Act of 2025. After receiving Trump’s approval, the bill has now been advanced for approval by both parties. Upon its passage, the president would be required to increase duties by up to 500 percent on all goods and services imported into the United States from countries that knowingly engage in the trade of Russian-origin uranium and petroleum products.
US Senator Lindsey Graham has directly named India in a post on X (formerly Twitter). Lindsey Graham said that this bill would give President Trump significant leverage against countries like China, India, and Brazil, to force them to stop buying cheap Russian oil. Furthermore, the bill would allow for tariffs of up to 500 percent if Russia, or those acting on its behalf, refuse to negotiate a peace agreement with Ukraine.
What tariffs are currently imposed on India?
| Time | Tariff Rate | Reason | Status |
| July 2025 | 25% | Indian import of Russian oil | In effect |
| August 2025 | Additional 25% (Total 50%) | continuing to purchase oil from Russia | In effect |
| January 2026 | Proposed 500% | Under the Russia Sanctions Bill 2025 | Currently proposed, not yet in effect |
