The backing of a significant sanctions bill by President Donald Trump could challenge India’s trade ties with the United States. This new legislation, if enacted, threatens to impose tariffs as high as 500 per cent on nations that continue to purchase Russian oil. India, being one of the largest importers of Russian crude, is positioned at the forefront of this potential economic pressure.

The White House confirmed Trump’s endorsement during discussions about the legislation that had garnered attention after its primary Republican advocate, Senator Lindsey Graham, passed away. The proposed law is termed the Sanctioning Russia Act and seeks to empower the US President to impose immense secondary tariffs on countries persisting in their dealings with Russia’s energy sector.

If the bill proceeds to enactment, it would signify one of the most stringent measures by the US aimed at diminishing Russia’s oil revenues since the onset of the conflict in Ukraine. The legislation raises concerns regarding its implications for countries like India, which have maintained significant trade relations with Moscow.

Trump Leaves Room for Secondary Sanctions

The statement reflects the broader scope of the bill, which aims not solely at Russia but also considers the implications for foreign nations purchasing its energy resources. The complex geopolitical dynamics emerge as significant, given India’s strategic position as one of Russia’s major crude consumers.

A White House official confirmed Trump’s support for the legislation in response to inquiries about its prospects and the potential for India encountering penalties. The bill was co-authored by Senator Graham before his passing, alongside Democratic Senator Richard Blumenthal. Graham had previously cited the need to concentrate pressure on major buyers such as India and China, who collectively account for nearly 70 per cent of Russia’s energy exports.

Economic Consequences for India

The proposed legislation under scrutiny has stimulated discussions regarding its potential economic repercussions on nations that persist in importing Russian crude. Earlier this year, India had made efforts to reduce its purchases of Russian oil amid negotiations with Washington and following the imposition of sanctions on multiple Russian energy entities.

Recent data from Kpler indicates a significant decrease in India’s imports of Russian crude, dropping from approximately 1.84 million barrels per day in November 2025 to around 1.04 million barrels per day by February 2026. This decline illustrates the shifting dynamics of India’s oil procurement amidst external pressures.

Further complicating India’s purchasing situation is the lapse of a temporary waiver from the US Treasury, which expired on June 17. This waiver had previously allowed Indian refiners to continue sourcing Russian crude without facing immediate sanctions, leaving India in a legally ambiguous position regarding ongoing oil imports.

The legislative proposal now awaits further deliberation in the US Senate. Many lawmakers view the passing of the bill as homage to Senator Graham’s advocacy for the measure prior to his death, while it has also sparked some dissent within Republican ranks.

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