US President Donald Trump has backed a proposed sanctions bill that would allow Washington to impose import tariffs of up to 500% on goods from countries that continue to buy Russian oil and gas, a move that could sharply escalate global trade tensions and strain relations with major economies such as India and China.
The bipartisan legislation, introduced in the US Senate, is aimed at intensifying economic pressure on Moscow by targeting nations that the United States believes are indirectly funding Russia’s war effort through continued energy purchases. The bill would give the US president broad authority to levy exceptionally high duties on imports from countries that buy Russian crude, refined petroleum products or other energy supplies.
Supporters of the proposal argue that existing sanctions have failed to fully curb Russia’s energy revenues and that secondary measures are necessary to close loopholes. Senator Lindsey Graham, one of the bill’s key sponsors, has said President Trump has indicated his support for the measure, significantly improving its chances of advancing in Congress. Lawmakers backing the bill say the threat of extreme tariffs would force countries to reconsider their energy ties with Moscow.
If enacted, the proposal could have major implications for India, which has emerged as one of the largest buyers of Russian crude since Western sanctions were imposed. Indian refiners have taken advantage of discounted prices to secure supplies, citing energy security and affordability. New Delhi has consistently maintained that its purchases are legal, transparent and in line with national interest, but the proposed US move raises the risk of fresh trade friction between the two countries.
China and Brazil, which have also continued to trade energy with Russia, could face similar exposure. Analysts warn that tariffs at such levels would effectively block access to the US market for many exporters, potentially disrupting global supply chains and increasing costs for American consumers. Sectors ranging from industrial goods and consumer products to pharmaceuticals and textiles could be impacted if trade flows are curtailed.
Financial markets have begun to assess the potential fallout, with investors concerned that the bill could add a new layer of uncertainty to an already fragile global trade environment. Export-oriented economies are seen as particularly vulnerable if Washington chooses to aggressively enforce the measure.
The proposed tariffs represent a sharp escalation from previous sanctions, which largely focused on restricting direct trade with Russia. By targeting third countries, the United States would be extending its sanctions regime beyond its traditional boundaries, a move that critics argue could undermine multilateral trade rules and invite retaliation.
The Trump administration has defended the approach as necessary to prevent sanctioned oil from circulating in global markets and to reduce funding flows to governments viewed as hostile to US interests. However, it remains unclear how broadly the tariff powers would be applied or whether waivers could be granted to strategic partners.
As the bill moves through the legislative process, governments and businesses around the world are closely watching for signs of how aggressively Washington intends to deploy one of the most severe trade measures proposed in recent years.