A sweeping new US sanctions proposal targeting countries that continue importing Russian petroleum and uranium products is set to reshape global trade dynamics if enacted, with India, China, and Brazil among the most exposed economies. The proposed legislation, backed by former US President Donald Trump, would authorise tariffs of up to 500% on imports from nations deemed to be financially supporting Russia’s war effort in Ukraine.
The bill, formally titled the Sanctioning Russia Act of 2025, has been introduced in the US Senate by Republican Senator Lindsey Graham and is moving toward bipartisan consideration in Congress. Importantly, the legislation has not yet become law and would require approval by both chambers of Congress before any tariffs could take effect.
What the Proposed Law Seeks to Do
Under the bill’s provisions, the US president would be required to impose tariffs of no less than 500% on all goods and services imported into the United States from countries that “knowingly engage” in trade involving Russian-origin oil, gas, or uranium products.
Unlike targeted sanctions aimed at specific sectors or firms, the proposed tariffs would apply broadly across imports, making them among the most severe trade penalties ever contemplated by Washington. The intent, according to the bill’s sponsors, is to sharply increase the economic cost for countries that continue buying discounted Russian energy.
The sanctions mechanism is tied directly to the Ukraine conflict. If the Russian government or its proxies refuse to engage in meaningful peace negotiations, the tariffs would be triggered. At the same time, the bill allows for suspension or reinstatement of sanctions if a peace process collapses or if Moscow renews military escalation.
Trump Signals Support, Graham Frames Strategy
Senator Graham said the proposal gained momentum after what he described as a productive meeting with Trump, who has publicly signalled support for the bill. Writing on X, Graham argued that the legislation would give Trump “tremendous leverage” over countries purchasing Russian oil at discounted rates.
“This bill will allow the President to punish those countries buying cheap Russian oil that helps fund Putin’s war machine,” Graham said, naming India, China, and Brazil as key importers of Russian energy since the war began.
Graham has positioned the bill as both a sanctions tool and a negotiating instrument, claiming Ukraine has shown willingness to make concessions while Russian President Vladimir Putin continues military operations.
India’s Exposure and Diplomatic Pushback
India stands out as one of the most affected countries under the proposed framework. Since the start of the Russia-Ukraine war, New Delhi has significantly increased imports of discounted Russian crude, citing domestic energy security, inflation control, and supply diversification.
Graham revealed that India’s ambassador to the United States, Vinay Mohan Kwatra, met him last month to seek tariff relief. According to Graham, the ambassador argued that India had already reduced its reliance on Russian oil and requested a rollback of an additional 25% tariff imposed in August 2025.
Those earlier measures raised duties on certain Indian exports to as high as 50%, with Washington linking the penalties to India’s energy trade with Moscow.
Trump Acknowledges Strain in US-India Ties
Trump has publicly acknowledged that the tariffs have strained relations with Prime Minister Narendra Modi. Speaking at a House Republican retreat, Trump said Modi was unhappy with the trade measures but conceded that India had “very substantially” reduced Russian oil purchases.
“He’s not that happy with me because they’re paying a lot of tariffs now,” Trump said, adding that further tariff action remained possible if Washington felt New Delhi was not doing enough on the Russian oil issue.
India Rejects Assurances Claim
The Indian government has pushed back against Trump’s earlier assertion that Modi personally assured Washington of halting Russian oil imports. New Delhi clarified that no such commitment was given, reiterating that India’s energy decisions are guided by national interest and market conditions.
As the sanctions bill advances, Indian exporters particularly in sectors already facing elevated US duties are watching developments closely, with concerns over supply chain disruptions and reduced market access.
Wider Geopolitical and Economic Implications
Beyond India and China, the proposed law could have far-reaching consequences for global energy markets and trade norms. By weaponising tariffs at such an unprecedented scale, the US would be signalling a willingness to use trade policy as a direct geopolitical enforcement tool.
While Trump has projected himself as a potential broker in the Russia-Ukraine conflict and continues intermittent engagement with both Putin and Ukrainian President Volodymyr Zelenskyy, the bill underscores Washington’s readiness to escalate economic pressure if diplomacy stalls.
For major economies balancing strategic autonomy against access to the US market, the message is stark: continued engagement with Russian energy could soon carry severe economic consequences.
