GG News Bureau
Washington, 2nd July – In an intense ratcheting up of U.S. economic pressure on nations that continue trade with Russia, Republican Senator Lindsey Graham introduced a bill suggesting a staggering 500% tariff on products brought in by nations that have business with Russia, specifically India and China.
The bill, which has a growing following in Congress with backing from 84 senators, is intended to undermine Russia’s war economy during the long-running Ukraine conflict, now in its third year. Former President Donald Trump has allegedly signed off on the bill, providing it broad political support just before the July recess.
In an interview with ABC News, Graham stated, “We are providing Trump with a weapon he doesn’t now possess—a potent economic instrument to pressure countries subsidizing Putin’s war machine.” According to him, the bill is intended to corner Russian President Vladimir Putin into negotiations by depriving his top oil revenue sources, particularly India and China, who together account for more than 70% of Russian oil exports.
What the Bill Proposes
If enacted, the bill would permit the U.S. President to level a 500% tariff on the imports of nations that keep buying Russian oil and other strategic commodities. The goal is to deter international economic activity with Moscow. Though Trump would maintain veto authority under the bill, he has not indicated any protest, indicating his administration is prepared to act strong should he regain the presidency.
India Faces Potential Fallout
For India, this change could be economically problematic. As a reaction to Western sanctions, India had increased oil imports from Russia under a rupee-ruble mechanism of trade, avoiding the dollar-based SWIFT system. The action increased the contribution of Russian oil in India’s energy import to over 40% from 1% earlier, making Russia a vital energy partner.
India recently scheduled to import 2 to 2.2 million barrels a day of Russian oil in June, a record high in two years. If the U.S. slaps high tariffs on Indian products, it would drastically hurt India’s exports to the American market, particularly in textiles, pharma, and technology.
Russia Reacts Sharply
The Kremlin criticized the proposed bill, describing it as a sign of Senator Graham’s “Russophobic fixation.” Kremlin spokesman Dmitry Peskov described the bill as counterproductive and asked if imposing such hostile actions would lead to peace in Ukraine.
With Washington drawing closer to a vote, the bill is being monitored closely by New Delhi economic and diplomatic circles, which are anxious that it could redefine India’s trade strategy and geopolitical alignments.
