Trump Signals Tougher Trade Stance as US Bill Opens Door to Steep Tariffs on India Over Russian Oil
The possibility of a fresh trade flashpoint between India and the United States is emerging after US President Donald Trump approved legislation that could allow Washington to impose punitive tariffs on countries purchasing petroleum products from Russia.
Once enacted, the measure could expose India to tariffs of up to 500 per cent, significantly raising the stakes in an already strained bilateral trade relationship.
Trump’s move has sharpened concerns in New Delhi, as India is already among the Asian countries facing some of the highest tariff pressures from the US, amounting to nearly 50 per cent in certain sectors.
This includes a 25 per cent levy linked specifically to India’s imports of Russian energy, which has helped cushion domestic fuel prices amid global volatility.
The bill, according to US lawmakers, is designed to give the White House sweeping powers to economically pressure major economies such as India, China, and Brazil to scale back or halt purchases of discounted Russian oil.
US Senator Lindsey Graham said the proposed law would serve as a powerful tool for the administration to compel countries to change course.
Speaking ahead of the bill’s expected introduction in Congress next week, Graham argued that economic pressure was necessary to weaken Moscow’s war effort.
In a post on the social media platform X, Graham stated that the legislation had arrived at a critical moment.
He claimed that Ukraine was showing readiness for compromise in pursuit of peace, while Russian President Vladimir Putin was, in his words, relying on rhetoric rather than meaningful engagement.
The bill, he said, would allow President Trump to penalise countries that are “fueling Putin’s war machine” by buying cheap Russian oil.
Trump himself has recently hinted at a tougher approach toward India. Speaking to reporters aboard Air Force One, he said that Indian Prime Minister Narendra Modi was aware of his displeasure on trade issues.
While describing Modi as “a good man,” Trump added that keeping the US president satisfied was important and warned that tariffs could be raised “very quickly.”
Trade tensions have also spilled into the agricultural sector. Last month, Trump warned of potential new duties on Indian rice, following complaints by American farmers at the White House.
They accused India, along with China and Thailand, of undercutting global markets by exporting grain at artificially low prices.
Meanwhile, broader trade negotiations between India and the United States remain stalled.
Six rounds of talks aimed at resolving tariff disputes have already taken place, but progress has slowed, leaving key issues unresolved as political and strategic pressures mount on both sides.
As Washington sharpens its economic tools to isolate Russia, India now finds itself navigating a delicate balance between safeguarding its energy security and managing an increasingly complex trade relationship with its most important strategic partner in the West.
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