Trump's New Sanctions Bill: A Game Changer for Global Oil Trade?

US President Backs Tough Sanctions on Russian Oil

New York/Washington: President Donald Trump has endorsed a sanctions proposal that could impose a staggering 500% tariff on nations purchasing Russian oil, aiming to exert pressure on countries like China and India to halt their acquisition of inexpensive oil from Moscow.

Senator Lindsey Graham announced on Wednesday that this legislation would provide the White House with significant leverage over nations such as China, India, and Brazil, encouraging them to cease their purchases of Russian oil.

Following a productive discussion with President Trump on various topics, Graham shared on social media that the bipartisan sanctions bill he has been developing with Senator Blumenthal and others has received the green light.

He emphasized that the timing is crucial as Ukraine seeks peace while Putin continues his aggressive actions, stating that the bill would enable Trump to penalize countries that buy Russian oil, which funds Putin's military operations.

Graham reiterated that the bill would empower Trump to pressure nations like China, India, and Brazil to stop financing Putin's war through their oil purchases.

He expressed optimism for a strong bipartisan vote on the bill, potentially as soon as next week.

Trump has already imposed a 50% tariff on India, one of the highest globally, which includes a 25% levy on its Russian energy imports.

The Sanctioning Russia Act of 2025, introduced by Graham and Blumenthal, aims to impose secondary tariffs and sanctions on countries that continue to support Putin's war efforts in Ukraine.

The proposed legislation includes a 500% tariff on the secondary purchase and resale of Russian oil, with nearly all members of the Senate Foreign Relations Committee co-sponsoring it.

Graham and Blumenthal previously stated that the new strategy implemented by Trump is a significant step towards ending the conflict between Russia and Ukraine, highlighting the need for tariffs against nations like China, India, and Brazil that support Putin's military through oil purchases.

Earlier this week, Graham mentioned that Indian Ambassador to the US, Vinay Kwatra, informed him about India's reduction in Russian oil purchases and requested that Trump consider lifting the tariffs imposed on India.

While traveling with Trump on Air Force One, Graham discussed the tariff bill, emphasizing the necessity of applying pressure on Putin's customers to resolve the Russia-Ukraine conflict.

Trump acknowledged that the sanctions are severely impacting Russia and referenced India's situation.

Graham noted that the US has imposed a 25% tariff on India for its Russian oil purchases.

He recalled a recent visit to the Indian Ambassador's residence, where the envoy expressed concerns about the tariffs and requested relief.

Graham stated, "This strategy is effective, but if you continue to buy cheap Russian oil, you are sustaining Putin's war efforts. We aim to provide the President with the means to make that a difficult choice through tariffs. I genuinely believe that Trump's actions are a key reason why India is now purchasing significantly less Russian oil."

Last month, India's Ambassador to the US, Vinay Kwatra, hosted several US Senators, including Graham and Blumenthal, at India House in Washington, DC, where they engaged in productive discussions on various aspects of the India-US partnership, including energy, defense cooperation, and trade.