More tariffs on the way? Donald Trump greenlights Russian sanctions bill that allows 500% levies; could target India's oil purchase from Moscow

Republican Senator Lindsey Graham on Wednesday announced that US President Donald Trump "greenlit" the bipartisan Russia sanctions bill.

The bill, that is set to move forward in Congress, targets countries that do business with Russia.

Graham said that he has been working on the law with several Republicans and Democrats for months. If passed, it will impose sanctions and heavy tariffs on countries indulged in business with Russia, including buyers of Moscow's energy.

This comes after Russia failed to reach an agreement over a peace deal with Ukraine.

"This bill will allow President Trump to punish those countries who buy cheap Russian oil fueling Putin’s war machine," Graham said, adding that counties like China, India and Brazil would be impacted.

"This bill would give President Trump tremendous leverage against countries like China, India and Brazil to incentivize them to stop buying the cheap Russian oil that provides the financing for Putin’s bloodbath against Ukraine," Graham said in a post on X.

Graham said that the "bipartisan vote" could be done as early as next week.

Talks regarding an end to the nearly four-year war in Ukraine have gained momentum since November.

On Tuesday, the US backed broad coalition of Ukraine's allies in their promise to provide security guarantees that leaders said would include binding commitments to support the country if Russia attacks again.

However, Russia has given no ‌sign that it would accept a peace deal with the security guarantees envisaged by Ukraine's allies.

How will India be affected?

According to the US Congress website, the bill named “Sanctioning of Russia Act 2025", penalises individuals or entities linked to Russia.

A key provision includes raising tariffs on all goods and services imported from Russia into the United States to at least 500 per cent of their value.

It also proposes 500 per cent tariff on all goods and services imported into the US from countries that "knowingly engage in the exchange of Russian-origin uranium and petroleum products".

India has been the second-largest buyer of Russian oil behind China, according to the Centre for Research on Energy and Clean Air (CREA).

India has imported about 144 billion euros' worth of crude oil from Russia since the start of the Ukraine war, Centre for Research on Energy and CREA, a European think tank, said on Tuesday.

Trump has already imposed 50 per cent tariff on Indian goods imported into the US citing Russian oil imports.