By Tasneem Bandukwala
The US has taken a step that could seriously affect trade with India and China. U.S. President Donald Trump has approved a sanctions bill that targets nations continuing to buy oil and other energy products from Russia. If passed into law, the bill could allow the US to impose up to 500 percent tariffs on imports coming from these countries.
The bill, called the Sanctioning Russia Act of 2025, aims to reduce Russia’s income from energy exports, which the US believes helps fund its war on Ukraine. Lawmakers supporting the bill say countries that continue buying Russian oil, gas, or uranium are indirectly supporting Moscow and should face economic consequences.
Under the proposed law, the US president would be required to impose a minimum 500 percent tariff on all imports from countries that are seen as knowingly trading in Russian energy. These penalties would apply if Russia is judged to be acting aggressively or refusing to engage in peace talks.
The bill also includes other punishments, such as visa restrictions and financial sanctions. However, it allows the US president to temporarily suspend the tariffs if it is considered necessary for national interests.
India has been one of the largest buyers of Russian oil since the Ukraine war began in 2022, mainly because the oil is sold at discounted prices. China is Russia’s biggest energy customer overall. Because of this, both countries are seen as most vulnerable to the proposed US sanctions.
For India, the impact could be severe. The United States is one of its biggest export markets. A 500 per cent tariff would make Indian goods too expensive to sell in the US, hurting exporters and potentially affecting jobs. India is already dealing with higher-than-usual US duties on some products, making the situation more challenging.
China could also face major pressure, though experts say its wider export base may help it absorb some of the impact better than India.
Analysts warn that the threat of such high tariffs could weaken India’s position in trade talks with other countries. India is currently negotiating trade agreements with several regions, including the European Union and Gulf nations. Increased pressure from the US could make these negotiations more difficult.
Supporters of the bill say it sends a strong message against Russia’s actions in Ukraine. Critics, however, argue that such harsh measures could damage global trade, strain diplomatic relations, and create economic instability beyond Russia.