India has officially responded to US President Donald Trump’s support for a new bill that could impose a 500% tariff on Russian oil buyers. The government stated it is “fully aware” of the proposal and is “carefully monitoring” the situation.
Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said that India’s energy strategy focuses on market conditions and the need for affordable fuel for its 1.4 billion people. “Based on these factors, we determine our strategy and policy,” Jaiswal said on Friday.
“At the same time, I would like to say that, as far as energy sources are concerned, you are well aware of our approach. We take into account the conditions and environment in the global market, while also keeping in mind our imperative of ensuring that energy is made available at affordable prices to our 1.4 billion people,” Jaiswal said.
What does the Russia Sanctions Bill say?
The Russia Sanctions Bill, primarily authored by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal, enables the US administration to impose tariffs and secondary sanctions of up to 500% on countries that purchase Russia's oil, gas, uranium, and other exports.
The measure aims to choke off a key source of funding for Russia’s military operations.
A version of the bill released in April 2025 has a provision for the President to “waive the 500% tariffs for a period of up to 180 days with respect to a country, good or service if he determines it is in the national interest of the United States”.
Graham said he met with Trump at the White House on Wednesday, during which the POTUS extended his support for the bill, which has been in progress for months. A White House official also confirmed the development, as reported by the Associated Press.
What could the Bill mean for India?
If passed, the Graham-Blumenthal sanctions bill would authorise Trump to levy up to 500% tariffs on nations that purchase Russian oil or uranium.
The proposed bill could see the US tariffs on India shoot up to an unbelievable 500% from the already-high 50% rates.
Experts have signalled that the 500% tariffs would be a major negative for the Indian economy and the markets, emphasising that even with the existing tariffs of 50%, it would be difficult for the economy to sustain its current growth momentum.
Defending his proposal, Graham had claimed the bill would give President Trump “tremendous leverage” against countries like China, India and Brazil to incentivise them to stop buying Russian crude, which he claimed “provides the financing for Putin’s bloodbath against Ukraine.”
US Supreme Court tariff decision in focus
India's comments come ahead of the US Supreme Court's verdict on tariffs imposed by Trump on America's trade partners. The top court is expected to issue its order on Friday, having scheduled 9 January as an “opinion day,” which marks the first opportunity for a ruling on the Trump tariffs.
Trump's tariffs were challenged in courts, and lower federal courts, as Mint reported, have already ruled that many of the tariffs exceeded presidential authority under existing laws.
