500% in tariffs on countries that buy oil or uranium from Russia

 500% in tariffs

India exports significant amounts of gems & jewelry, pharmaceuticals, electronics, textiles & apparel, engineering goods, and refined petroleum products to the USA, with major categories including precious stones, machinery, organic chemicals, and agricultural goods like rice, making the US India's largest trade partner for exports. Key items also include handicrafts, leather goods, medical devices, and auto components, showing a diverse trade basket. 

 levy up to 500% in tariffs  

Doubling down on his pressure on India to stop importing oil from Russia, U.S. President Donald Trump has ‘greenlit’ a legislation 

that will empower him to levy up to 500% in tariffs on countries that buy oil or uranium from Russia, according to senior Senator Lindsey Graham.

Mr. Graham

a close associate of Mr. Trump, said the U.S. President on Wednesday has “greenlit” the Russia Sanctions Bill, which could be voted in Congress “as early as next week”.

“This Bill would give President Trump tremendous leverage against countries like 

• China, 
• India, 
• and Brazil to incentivise them to stop buying the cheap Russian oil that provides the financing for [Russian President Vladimir] Putin’s bloodbath against Ukraine,” Mr. Graham said.

How india Responds ?

“We are aware of this bill, and we are focused on the developments. You are aware of our approach towards energy sources. 

In this regard, our approach depends on the 

• situation in global markets 
• our imperative on making energy available to our people  

SUPPORT IN USA PARLIAMENT 

 The bipartisan Bill has thus far

• got 84 co-sponsors in the Senate (out of 100 members), and 
• 151 co-sponsors in the House of Representatives, suggesting it will be passed smoothly once brought to a vote.

Potential Implications for India

• Trade Halting: such high tariffs on goods and potentially services could effectively halt India’s $120 billion annual exports to the United States.
• Sectoral Damage: Labour-intensive sectors such as textiles, footwear and marine products, already burdened by US tariffs of up to 50%, could face further erosion of competitiveness and export viability.
• Weakened Bargaining Power: Can negatively affect future trade pacts negotiations with various entities, including the European Union, the Gulf Cooperation Council etc.
• Other: Dent on India- US relations, effect on economic growth, etc.

‘Top priority’

 “top priority of USA ” 

The move came just ahead of the arrival of U.S. Ambassador-designate Sergio Gor to New Delhi, who had said that ensuring India ends its import of Russian oil is a “top priority”.

Mr. Gor,  - begin his tenure as Ambassador to India and “Special Envoy to South and Central Asia” on Monday, and is expected to outline his mission with a public statement.

Earlier this week

 Mr. Trump, who had jointly addressed the press along with Mr. Graham, announced 

they had a “great legislation coming”, as Mr. Graham said the Bill would give the U.S. President discretion to choose the figure of the tariffs over and above 25% penalty tariffs already imposed on India.

Way Ahead for India

• Diversifying Exports: Diversify goods exports away from the US to reduce vulnerability to unilateral tariff hikes. 
• Export Promotion Mission: Increase outlay to strengthen India’s export ecosystem impacted by tariff escalations.
• Accelerating Trade Deals such as India-EU FTA negotiations.
• Simplified regulatory processes and rationalised duties on critical raw materials like cotton, leather, and gem inputs.

INDIAN COMPANY RESPONSE 

This week, Reliance announced 

that it has not received any cargo of Russian oil at its Jamnagar refinery through most of December, 

and does not expect any in January, indicating that it has stopped orders of the oil for now.

Indian PSUs 

increased their intake sharply in November 2025, 

but with Reliance stopping all such imports and 

Nayara Energy

 the other big importer under sanctions from Western countries unable to import, it is unlikely that India’s Russian oil purchases can recover to previous levels.

IN PREVIUS EXAMPLE WHAT WE LEARN 

In 2018

under similar pressure from the previous Trump administration, India had “zeroed out” its oil imports from Iran and Venezuela as well.

Meanwhile in Paris, Polish Foreign Minister Radoslow Sikorski expressed 

“satisfaction” that India has reduced its oil imports from Russia, during a joint press appearance with External Affairs Minister S. Jaishankar and Foreign Ministers of France and Germany.

Mr. Gor AND INDIA 

In September, Mr. Gor said that Mr. - Trump had been “crystal clear” on the issue of India’s oil purchases.

“They (India) must stop buying Russian oil And I believe almost every single member of this committee has co-sponsored Senator Graham’s legislation which has proposed a 500% tariff on secondary purchase and reselling of Russian oil. 

The President has only imposed a 25% tariff [thus far],” he added, referring to the Russia Sanctions Act.