Trump Backs Sanctions Bill Threatening India With 500% Tariffs

Introduced by the late Senator Lindsey Graham and Senator Richard Blumenthal, the measure grants the U.S. president unprecedented authority to levy secondary tariffs on countries doing business with Russia’s energy sector. Graham long argued that pressuring major buyers like India and China, which account for roughly 70 percent of Russian energy exports, is essential to curbing Moscow’s war funding. The urgency of the bill has intensified following the June 17, 2026, expiration of a U.S. Treasury waiver that previously shielded Indian crude purchases from sanctions.

Economists warn that a full implementation of these tariffs could shrink India’s GDP by 0.5 percent, with the pharmaceutical, textile, and IT sectors facing immediate exposure. While the Indian government maintains its energy strategy is dictated by domestic economic necessity rather than geopolitical alignment, the legislation is gaining political traction in Washington as a tribute to Graham’s legacy. Despite this momentum, internal dissent persists; Senator Rand Paul has cautioned that such aggressive penalties risk destabilizing global trade, while figures like Senate Minority Whip Dick Durbin are pressing for a more explicit, public endorsement from Trump before advancing the bill through the Senate.