Trump Backs Russia Sanctions Bill That Could Hit India With 500% Tariffs

January 8, 2026

New Delhi: Accelerating efforts to end the Ukraine war, US President Donald Trump has given the “green light” to a new bill imposing tough sanctions on Russia. This proposed legislation would not only target Moscow but also allow for tougher action against countries trading with it—including India.

Republican Senator Lindsey Graham confirmed that Trump has approved advancing a bipartisan Russia sanctions bill and expressed hope that it could be voted on as early as next week.

“I had a very productive meeting with President Trump today on a variety of issues. He has given the green light to the bipartisan Russia sanctions bill. I hope it will be voted on soon, possibly as early as next week, with strong bipartisan support,” Graham said.

He also added that the bill would allow Trump to “punish” countries that are “buying cheap Russian oil to fuel Putin’s war machine.” Besides Russia, its major trading partners, such as India, China, and Brazil, could also be affected, echoing Trump’s earlier warnings about the BRICS countries.

What are the provisions of the bill?

Officially called the “Sanctioning Russia Act of 2025,” the bill focuses on taking action against individuals, entities, and countries that the US President considers acting at Russia’s behest or obstructing any peace agreement to end the Ukraine war.

The bill outlines four situations in which sanctions could be imposed on an individual or country:

1. Refusing to negotiate a peace agreement with Ukraine
2. Violating a negotiated peace agreement
3. Resuming aggression against Ukraine
4. Attempting to overthrow, weaken, or destabilize the Ukrainian government

In any of these situations, the President would have the authority to impose sanctions ranging from visa bans to import duties (tariffs) of up to 500 percent.

In addition, the bill authorizes the U.S. Treasury Department to impose sanctions such as asset freezes, and the Commerce Department to prohibit the export, re-export, or transfer of any U.S. energy product to or within Russia.

What will be the impact on India?

India already faces U.S. tariffs for its purchase of Russian crude oil, and for this reason, it is particularly targeted under this bill.

In August 2025, Trump announced an additional 25 percent tariff on India, which he described as a “penalty for buying Russian oil.” This decision followed his so-called “Liberation Day” campaign in 2025, when the US imposed new tariffs on several of its trading partners.

India was initially imposed a 25 percent tariff. A few months later, another 25 percent was added, accusing Russian oil purchases of “fueling the Ukraine war.” This brought the total tariff on India to 50 percent—one of the highest US tariffs, along with Brazil.

In early 2026, Trump hinted that tariffs on India could increase further if it continued to purchase oil from Russia.

Speaking to reporters aboard Air Force One, Trump said, “Modi is a good man. He knew I wasn’t happy and he needed to keep me happy.” He further stated that India trades with Russia and “we could very soon increase tariffs on that.”

If this new bill becomes law, it would mandate Trump to impose tariffs of “at least 500 percent” on all goods and services coming into the US from countries that “knowingly trade in Russian-origin uranium and petroleum products.” This could put India under significant trade pressure if it continues to import Russian energy.