A storm is brewing on Capitol Hill, and it could have serious consequences for India and China. Backed by US President Donald Trump, a contentious bill poised for introduction in August could impose crippling 500 percent tariffs on any nation continuing trade ties with Russia. “If you’re buying products from Russia, and you’re not helping Ukraine, then there’s a 500 percent tariff on your products coming into the United States,” declared Republican Senator Lindsey Graham in an interview with a media outlet. “India and China buy 70 percent of Putin’s oil. They keep his war machine going.”
This drastic legislative move, co-sponsored by Graham and Democratic Senator Richard Blumenthal, reportedly already has 84 co-sponsors and signals an aggressive escalation in Washington’s economic warfare against Moscow. Its intent is clear: bleed Russia’s war economy dry by cornering its largest oil buyers. “We are going to give President Trump a tool in the toolbox,” Graham said, underscoring the bipartisan push to isolate Russia and force it to the negotiating table over Ukraine.
The implications are staggering for India, one of Russia’s top crude oil buyers. According to reports, in the third year of the Ukraine invasion, India imported a staggering EUR 49 billion worth of Russian crude. Having traditionally sourced its oil from the Middle East, India pivoted sharply after the February 2022 invasion, capitalising on discounted Russian supplies.
But it’s not just oil on the line. Should the bill become law, Indian exports such as pharmaceuticals, textiles, and IT services could feel the pinch of brutal tariffs, upending a trade relationship that heavily favours the United States. The US is India’s primary export destination, and any disruption could spiral into serious diplomatic and economic fallout.
All this comes as Washington and New Delhi edge closer to a long-anticipated bilateral trade agreement. US Treasury Secretary Scott Bessent said that the deal is “very close,” even as talks remain locked in a stalemate over key agricultural issues. Indian officials are still in Washington, working to iron out remaining disagreements, according to sources familiar with the matter.
The proposed legislation was originally introduced in March but stalled after the White House signalled resistance. According to The Wall Street Journal, the Trump administration had “quietly pressured” lawmakers to water down the bill—changing its language from mandatory (“shall”) to discretionary (“may”).
But now, with Trump’s blessing, momentum has returned. Graham confirmed the breakthrough came during a round of golf. “For the first time yesterday, the President told me—I was playing golf with him. He says, ‘It’s time to move your bill.’”
Reports claim that Graham proposed a carve-out for nations supporting Ukraine in an attempt to lessen criticism, especially from European allies. Yet, if passed, this bill’s harsh force will reshape America’s trade policy with China and India, possibly setting off a chain reaction of global economic events with far-reaching political repercussions.
Also Read: Bangladesh Clears US Dollars 437 Million Dues to Adani https://www.vibesofindia.com/bangladesh-clears-us-dollars-437-million-dues-to-adani/
