(FILES) A general view of the Guwahati Refinery operated by Indian Oil Corporation is pictured in Guwahati on March 30, 2023. (Photo by Biju BORO / AFP)
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Moneycontrol08-01-2026, 13:55

Trump's 500% Tariff Threat: Is India's Russian Oil Trade at Risk?

  • US proposes 'Sanctioning Russia Act of 2025', allowing 500% tariffs on countries trading in Russian oil and gas.
  • Donald Trump has 'greenlit' the bipartisan bill, increasing pressure on nations like India and China.
  • India and China are major buyers of discounted Russian crude, making them primary targets of the proposed sanctions.
  • Previous US tariffs on Indian goods linked to Russian oil purchases already reached 50%, with a 500% jump being economically devastating.
  • The 500% tariff is currently a threat, used as leverage in peace talks, but its inclusion in proposed law marks a sharp escalation.

Why It Matters: US 500% tariff threat on India for Russian oil is real leverage, not yet a certainty.

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