US President Donald Trump has voiced strong support for a new bipartisan sanctions bill targeting countries that continue buying Russian oil, putting India squarely in the spotlight with the threat of massive 500% tariffs on its exports to America. The legislation, known as the Sanctioning Russia Act of 2025 and spearheaded by Senators Lindsey Graham and Richard Blumenthal, empowers the president to slap at least 500% duties on all goods from nations deemed to be propping up Moscows energy revenues amid the Ukraine conflict. Trump, fresh off a meeting with Graham, has greenlit the bills push through Congress, calling it a vital tool to starve Putins war chest.

India has ramped up Russian crude purchases since 2022, snapping up discounted barrels that at peaks made up nearly 44% of its imports to shield consumers from global price spikes. Washington views this as indirectly bankrolling Russias military efforts, with Graham publicly singling out New Delhi alongside China. A full 500% tariff rollout could devastate key Indian exports like pharmaceuticals, textiles, and engineering products that thrive in the US market. It echoes Trumps earlier 2025 hike to 50% duties on select Indian goods, tied explicitly to oil flows from Russia.

Such steep penalties risk inflating Indias oil import costs further—past US measures already added billions to the bill by nudging up Brent prices. With Russian supplies projected to dip below 1 million barrels daily in January, refiners like Reliance are already pivoting amid payment hurdles and tanker shortages. Yet the bill offers presidential waivers for up to 180 days, opening doors for talks if India commits to faster diversification toward Middle East or US suppliers.

India maintains its purchases prioritize energy security and affordability, not geopolitics, while deepening US defense ties via the Quad. New Delhi could counter with trade concessions or retaliatory duties, but analysts see negotiation as the likeliest path to avert escalation. The bill awaits final congressional votes and Trumps signature, but its momentum signals a tougher US stance on third-country Russia ties. Watch for import data and bilateral statements in the weeks ahead as both powers balance alliance-building against energy realities.

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