Why is the US’s 500% Tariff Proposal on Countries Buying Oil from Russia a Warning Bell for India?
The United States has adopted a stricter stance against countries trading with Russia. Even three years after Russia's invasion of Ukraine, some countries—especially India and China—continue to purchase oil from Russia.
US Senator Lindsey Graham has introduced a bill proposing a 500% tariff on countries that continue to trade with Russia. Former President Donald Trump has supported this bill.
This development has rung alarm bells for countries like India, which have been buying cheap oil from Russia. The bill is intended as a tool to weaken Russia's war machinery and bring President Vladimir Putin to the negotiating table over the Ukraine conflict.
What Does the Bill Propose?
The bill calls for heavy tariffs on countries that buy oil and other goods from Russia—specifically targeting India and China. Senator Graham argues that India and China purchase about 70% of Russia's oil. Through this bill, the US aims to pressure these countries into halting trade with Russia.
Graham also clarified that the bill gives veto power to Donald Trump, meaning he could decide whether to enforce it. The bill reportedly has the support of 84 US Senators.
“We are giving Trump a weapon he currently doesn’t have,” Graham said. Although the bill was introduced in March, it was delayed due to objections from the White House and attempts to improve US-Russia relations under Trump. Now, it seems the Trump camp is ready to back the bill.
Why Is This a Warning for India?
At the onset of the Russia-Ukraine war, the US and European nations imposed strict trade sanctions on Russia and banned it from using the global payment system SWIFT. This made it difficult for Russia to trade globally.
During this period, India began buying Russian oil at discounted rates, using a rupee-ruble payment system instead of the US dollar.
As a result, Russia’s share in India’s total oil imports jumped from 1% to 40–44%. In June, India planned to import 2–2.2 million barrels per day from Russia—its highest level in the past two years.
If the proposed bill passes and a 500% tariff is implemented, Indian goods imported into the US could be subjected to heavy taxation.
Although a US-India trade agreement is currently in progress and may help reduce tariffs, this bill could still have a significant impact on India’s exports.
How Has Russia Reacted to the Bill?
Russia has strongly criticized the proposed legislation. Kremlin spokesperson Dmitry Peskov said Senator Graham is well known for his anti-Russia views. He stated,
“Graham is a flag-bearer of Russophobia. If it were up to him, these sanctions would have already been imposed.”
Summary:
- Russia sees the move as another example of US hostility.
- The US is considering a 500% tariff on countries trading with Russia—mainly India and China.
- The bill could disrupt India’s exports to the US if passed.
- It’s part of an attempt to isolate Russia economically and push Putin to negotiate over Ukraine.
- India, heavily reliant on cheap Russian oil, may face strategic and economic consequences.
India and US Trade Deal
US President Donald Trump made a major statement on the India-US trade deal on Tuesday. Trump said that the two countries will soon sign the trade agreement. He added that tariffs would be significantly reduced under the deal, making it a beneficial arrangement for both nations.
What Did Trump Say About the Trade Deal?
Speaking about the trade deal, Donald Trump said:
“I believe we are going to make a deal with India. It will be a very different kind of deal. Both countries will remain competitive. For now, India has kept its markets closed, and it will likely continue to do so. But after the deal, tariffs will be significantly reduced.”
July 9 Is the Deadline
It’s worth noting that on April 2, President Trump had imposed tariffs on several countries, which were later withdrawn. He gave all countries 90 days to finalize a trade deal, and that deadline ends on July 9. India is now pushing hard to finalize a bilateral trade agreement with the US before July 9.
Indian Delegation in the US
A delegation from India, led by Rajesh Agrawal, has arrived in the US to discuss the deal. Talks between India and the US will continue on Thursday and Friday. Both sides are making strong efforts to finalize the trade deal before the July 9 deadline.
India Could Become the Third Country to Sign a US Trade Deal
According to a senior official, if India fails to finalize the deal, the US may reimpose a 26% tariff on Indian goods. On the other hand, if the deal goes through, India would become the third country after China and the UK to sign a comprehensive trade agreement with the United States.
QUAD Stands with India, Condemns Pahalgam Terror Attack in One Voice; Says Perpetrators Must Be Punished
The foreign ministers of the QUAD nations have strongly condemned the recent terrorist attack in Pahalgam, Kashmir, which claimed the lives of 26 people. The United States, India, Japan, and Australia jointly asserted that those responsible for the attack must be brought to justice under all circumstances. The QUAD also emphasized the importance of peace and stability in the Indo-Pacific region and expressed concern over rising tensions in the East and South China Seas.
Strong Condemnation of Pahalgam Terror Attack
The QUAD foreign ministers unequivocally denounced the horrific terror attack that took place in Pahalgam, Jammu & Kashmir, on April 22, which resulted in the death of 26 individuals.
In a joint statement, the four nations—the US, India, Japan, and Australia—said the perpetrators, conspirators, and those financing the attack must be held accountable and punished without exception.
Joint QUAD Statement After Ministers’ Meeting
This joint statement was issued following the QUAD foreign ministers’ meeting held on Tuesday, attended by:
- S. Jaishankar, External Affairs Minister of India
- Marco Rubio, US Secretary of State
- Penny Wong, Foreign Minister of Australia
- Takeshi Iwaya, Foreign Minister of Japan
The leaders not only adopted a tough stance against terrorism but also reaffirmed their commitment to ensuring peace and stability in the Indo-Pacific.
Stress on Peace and Stability in the Indo-Pacific
In their joint statement, the QUAD leaders also expressed serious concern over the situation in the East and South China Seas, noting that the rising tensions and instability in these regions pose a threat to the entire area.
The QUAD reiterated its goal of maintaining a free, open, and inclusive Indo-Pacific, enabling all nations to thrive in peace and prosperity. The statement made it clear that the QUAD nations are ready to collaborate against terrorism and regional instability.
Jaishankar’s Remarks
After the meeting, India’s External Affairs Minister S. Jaishankar wrote on X (formerly Twitter) that the session was highly productive. He emphasized that the QUAD will now work with greater focus on contemporary challenges and opportunities.
Jaishankar also reaffirmed India’s sovereign right to protect its people from terrorism, underlining the country’s firm stand on national security.