US President Donald Trump has publicly endorsed a Senate bill that would enable tariffs of up to 500 percent on countries maintaining trade ties with Russia, a move that has major implications for countries such as India and China. The proposed legislation is a sharp escalation in Washington’s economic strategy to pressure Russia and its trading partners amid the ongoing conflict in Ukraine.

A Sweeping Tariff Proposal With Global Impact

The bill, known as the Sanctioning Russia Act of 2025, gives the US president authority to impose extremely high tariffs on countries importing major quantities of Russian oil, gas, petroleum products or uranium. Lawmakers behind the bill argue that nations financially supporting Russia through energy purchases indirectly strengthen its ability to continue the conflict in Ukraine.

India and China feature prominently in discussions around the proposed measure. India’s imports of Russian crude have grown substantially over the last two years, reaching several billion dollars a month. China remains Russia’s largest trading partner overall. Because both countries maintain these sizable import levels, they would fall within the scope of the bill if it becomes law.

For India, the proposed tariffs come on top of existing US tariff pressures. India already faces a higher tariff rate on some exports linked to its purchase of Russian oil and defence equipment. Any further increase, especially at levels approaching 500 percent, would bring severe costs for Indian industries that rely on the US market, including textiles, engineering goods, gems, jewellery and auto components.

India’s Strategic Dilemma and What Lies Ahead

The proposal places India in a delicate position. While India and the United States share close strategic ties, New Delhi has consistently defended its decision to buy Russian energy, citing affordability, reliability and domestic energy security. India also argues that its decisions reflect national interest and should not be viewed through geopolitical pressure alone.

Should the bill pass, India may need to consider several options: reducing Russian oil purchases, negotiating exemptions, or preparing for tariff-related disruptions in the US market. Any shift away from Russian imports could raise domestic fuel costs, while attempting to negotiate waivers may depend on broader diplomatic relations.

The proposed measure is also being watched by energy markets, as any reduction in purchases by major buyers like India could alter global crude flows. The bill’s progress through Congress will determine how quickly countries may need to adjust their trade strategies.

For now, the endorsement signals Washington’s intent to use tariffs as a geopolitical tool, not just a trade instrument. India, China and other large importers of Russian commodities will closely monitor the situation in the coming weeks, as the global trading environment could undergo significant shifts if the bill becomes law.