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Bill Threatening 500% Tariff On India For Russia Oil Trade Gets Trump’s Nod

Trump Directs US Withdrawal From 66 Organisations, Including UN Climate Convention

by OB Bureau
January 8, 2026
in World
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Bill Threatening 500% Tariff On India For Russia Oil Trade Gets Trump’s Nod

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Washington: US President Donald Trump has endorsed a bipartisan sanctions bill aimed at strengthening economic pressure on Moscow by threatening punitive tariffs of up to 500 per cent on countries that continue to buy Russian oil and related products, according to reports. This move can dramatically affect major energy importers such as India and China. He also reportedly signed a presidential memorandum directing the United States to withdraw from 66 international organizations and treaties, including the United Nations Framework Convention on Climate Change and the Intergovernmental Panel on Climate Change.

The legislation, known as the Russia Sanctions Bill and co-sponsored by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal, would empower the US president to levy steep tariffs and other secondary sanctions on nations that “knowingly purchase” Russian crude, uranium or petroleum products. Its supporters describe it as a tool to weaken Russia’s financial ability to sustain its military operations as the Ukraine war continues.

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Senator Graham, a key architect of the bill, said he discussed it with Trump at the White House on Wednesday, and indicated that a Senate vote could be scheduled as early as next week, reported NDTV World. A White House official, as quoted by AFP, also confirmed the president’s backing of the legislation, underscoring Washington’s intent to intensify economic measures against Moscow.

“This will be well-timed, as Ukraine is making concessions for peace and Putin is all talk, continuing to kill the innocent,” Graham said in a statement, reported NDTV World.

Implications for India and global trade

Under the bill’s provisions, countries that maintain large volumes of Russian energy imports could face punitive duties on their exports to the United States. India, which has been one of the largest buyers of discounted Russian crude, along with China and several other countries, is explicitly cited as a nation that could be affected if the legislation becomes law.

The threat of such high tariffs has already injected tension into U.S.–India ties. In 2025, Washington imposed tariffs of up to 50 per cent on certain Indian imports, including penalties tied to India’s energy purchases from Russia — a decision New Delhi called “unfair, unjustified and unreasonable.” India has framed its Russian oil purchases as necessary for its energy security and economic stability.

The potential for sweeping tariff penalties has elicited diplomatic responses beyond Washington and New Delhi. Poland’s Foreign Minister Radosław Sikorski voiced support for India in the face of the US threat, expressing satisfaction that India has reduced its Russian oil imports and affirming continued cooperation after engagements with Indian leaders in Europe.

Reactions on withdrawal of the United States from the bedrock global treaty

“President Trump’s withdrawal of the United States from the bedrock global treaty to tackle climate change is a new low and yet another a sign that this authoritarian, anti-science administration is determined to sacrifice people’s well-being and destabilize global cooperation. But forward-looking U.S. states and the rest of the world recognize that devastating and costly climate impacts are mounting rapidly, and collective global action remains the only viable path to secure a livable future for our children and grandchildren. Withdrawal from the global climate convention will only serve to further isolate the United States and diminish its standing in the world following a spate of deplorable actions that have already sent our nation’s credibility plummeting, jeopardized ties with some of our closest historical allies, and made the world far more unsafe,” said Rachel Cleetus, policy director and lead economist for the Climate and Energy Program at the Union of Concerned Scientists (UCS), as quoted by Hindustan Times.

 

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