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50% to 500%? India faces a tariff increase as Trump "favours" a measure imposing penalties on Russia.

50% to 500%? India faces a tariff increase as Trump "favours" a measure imposing penalties on Russia.

This law will "allow" Trump to "punish countries who buy cheap Russian oil fueling Putin's war machine," according to Lindsey Graham.

US President Donald Trump has "greenlit" a measure that would impose more penalties on Moscow as well as its trading allies, including India, intensifying his efforts to stop the conflict in Ukraine.

Trump has approved a bipartisan sanctions bill against Russia, according to Republican Senator Lindsey Graham. Graham told reporters that he hopes a vote on the matter will happen as soon as next week.

"President Trump approved the bipartisan sanctions measure against Russia following a very fruitful discussion today on a number of matters. In his statement, Graham stated, "I anticipate a robust bipartisan vote, hopefully as early as next week."

This plan will "allow" Trump to "punish countries who buy cheap Russian oil fueling Putin's war machine," the Republican lawmaker continued.

This list of nations will target Russia's trading partners, including India, which is already paying a high tariff because it buys Russian oil.

Trump declared an extra 25% tariff on Indian goods in August 2025 as a "penalty for India's purchase of Russian oil."

In keeping with Trump's earlier threats to the BRICS countries, China, Brazil, and India would all be scrutinized.

What is included in the new bill?

The "Sanctioning Russia Act of 2025" will concentrate on taking action against specific individuals and nations that the US President has determined are acting in Russia's direction and impeding the peace agreement to end the conflict in Ukraine.

The bill outlines four requirements that must be met for a person or nation to be sanctioned under this legislation. These are:

(1) declining to engage in peace talks with Ukraine

(2) going against a peace deal that was negotiated

(3) launching an additional invasion of Ukraine

(4) attempting to overthrow, dismantle, or undermine the Ukrainian government.

The measure requires the President to implement a number of sanctions, including tariffs as high as 500% and visa restrictions, if someone is found guilty of this.

The measure also requires the Commerce Department to prohibit the export, reexport, or in-country transfer of any energy or energy product produced in the United States to or inside Russia, and the Treasury Department to implement property-blocking sanctions.

How does India fare?
India already pays the US a hefty tariff. Trump reinstated and placed new penalties on all US trading partners during his "Liberation Day" exercise in 2025, sparking a number of trade disputes.

The initial tariff with India was 25%. But Trump imposed an extra 25 percent tax on India for "fueling the war in Ukraine through its purchase of Russian oil" months after the Liberation Day statement.

As a result, India's overall levies were raised to 50%, making it one of the nations with the highest US tariffs, along with Brazil.

Trump made a suggestion that he would raise the tariff on India once more at the start of 2026. The US president stated, without providing further details, that New Delhi's ongoing purchases of Russian oil would be the reason for this decision, if it were taken.

"Modi is a decent man. Trump told reporters on Air Force One, "He knew I was not happy, and it was important to make me happy." He also mentioned that India does trade with Russia and that "we can raise tariffs on them very quickly."

But if this law is approved, Trump "must" raise the tariffs to "at least 500 percent" on "all goods and services imported into the United States from countries that knowingly engage in the exchange of Russian-origin uranium and petroleum products."

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