The United States could sharply increase tariffs up to 500% on imports from India as early as next week, after President Donald Trump approved a bipartisan sanctions bill targeting countries that continue to buy oil and other energy products from Russia. The proposed legislation would allow Washington to impose penalties on nations that “knowingly” purchase Russian oil, which the US says helps fund President Vladimir Putin’s war in Ukraine.
Republican Senator Lindsey Graham confirmed the development in a post on X, saying Trump had cleared the bill after what he described as a “productive” meeting on Wednesday (7th January). Graham said the bill could be brought up for a vote in the US Congress as early as next week.
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.
This will be well-timed, as Ukraine is making concessions for peace…
— Lindsey Graham (@LindseyGrahamSC) January 7, 2026
Bill targets buyers of Russian oil and uranium
The legislation has been jointly sponsored by Senator Graham and Democratic Senator Richard Blumenthal. According to Graham, the bill would give President Trump “tremendous leverage” over major buyers of Russian energy, including India, China and Brazil. The aim, he said, is to pressure these countries into stopping their purchase of discounted Russian oil.
“This will be well-timed, as Ukraine is making concessions for peace, while Putin continues to kill innocent people,” Graham wrote. He added that the bill would allow Trump to “punish” countries that buy cheap Russian oil and uranium, which Washington believes directly supports Russia’s war effort.
Apart from sanctions on oil and uranium buyers, the bill would also ban US exports of energy products to Russia and block American investments in the Russian energy sector.
Trump prefers tariffs over sanctions
Despite clearing the bill, Senate and House leaders have delayed voting on it. This is largely because Trump has indicated that he prefers using tariffs rather than direct sanctions, especially against countries like India. India is currently the world’s second-largest buyer of Russian oil after China.
Last year, Trump significantly stepped up his tariff campaign against India. He imposed a 25 per cent reciprocal tariff on Indian imports, along with an additional 25% penalty linked to India’s Russian oil purchases. This pushed total duties on some Indian products to nearly 50% and caused serious strain in India-US relations.
China-US trade tensions deepen
Relations between Washington and Beijing have also worsened over tariffs. The US imposed duties of up to 145% on Chinese goods, prompting China to retaliate with tariffs of up to 125% on American products. The back-and-forth trade measures have further deepened tensions between the two economic giants.
In recent weeks, Trump has once again hinted at imposing fresh tariffs on India. Speaking to reporters aboard Air Force One over the weekend, he said Prime Minister Narendra Modi “knew I was not happy” about India’s continued oil trade with Russia.
“PM Modi is a very good man. He’s a good guy,” Trump said. “But it was important to make me happy. They do trade, and we can raise tariffs on them very quickly.”
Trade talks remain stuck
Late last month, Trump also threatened new tariffs on Indian rice after a US farmer raised concerns at a White House roundtable about alleged dumping by India, China and Thailand.
Meanwhile, trade negotiations between India and the US remain stalled. Washington has been pressing New Delhi to lower import duties on American agricultural products. India, however, has made it clear that it will continue to protect its farming and dairy sectors, even as pressure from the US mounts.
