US plans ‘economic bunker buster’ invoice: Will Donald Trump impose 500% tariff on countries importing oil from Russia? How it may impact India

The transformation in India’s oil import technique has been exceptional, with Russian oil’s share growing from lower than 1 per cent to roughly 40-44%. (AI picture)

India, a big importer of crude oil from Russia, may need to be careful for a brand new US invoice which proposes imposing a 500% tariff on countries that import from Russia. In an interview with ABC News, Senator Lindsey Graham stated that he wished the US to impose tariffs to cease them from supporting Vladimir Putin’s conflict machine. Moscow launched full-scale invasion of Ukraine three years in the past on February 24, 2022. “Big breakthrough here. So what does this bill do? If you’re buying products from Russia and you’re not helping Ukraine, then there’s a 500 percent tariff on your products coming into the United States. India and China buy 70 percent of Putin’s oil. They keep his war machine going. My bill has 84 co-sponsors. It would allow the president to put tariffs on China and India and other countries to get them — stop them from supporting Putin’s war machine, to get him to the table. For the first time yesterday, the president told me,” Graham stated.Also learn: ‘Economic bunker buster for India, China’: How this US senator’s Russia sanctions invoice would show ‘bone crushing’ for trade- if handedGraham has actively been advocating for the laws, cautioning that it would function an “economic bunker buster” for nations akin to India and China, which have considerably enhanced their imports of Russian petroleum merchandise.

What’s the five hundred% tariff menace about?

How will it impact India?

India considerably altered its oil procurement patterns after Russia’s Ukraine invasion in February 2022. The nation transitioned from its conventional Middle Eastern suppliers to Russian oil sources, capitalising on beneficial costs ensuing from Western sanctions and European embargoes. Russian oil deliveries to India stood at 1.96 million barrels per day (bpd) in May.The transformation in India’s oil import technique has been exceptional, with Russian oil’s share growing from lower than 1 per cent to roughly 40-44 per cent of whole crude purchases in a brief interval.Also Read | India laps up discounted crude: RIL, Nayara Energy get massive chunk of Russia’s flagship oil exports; Reliance world’s single largest purchaser of UralsIndia’s Russian oil imports reached new heights in June, surpassing mixed imports from Saudi Arabia and Iraq, throughout a interval of market uncertainty following Israel’s main offensive towards Iran.As the world’s third-largest oil importer and shopper, India has secured roughly 5.1 million barrels of worldwide crude oil, which its refineries convert into varied gas merchandise together with petrol and diesel.“According to preliminary analysis by global trade analytics firm Kpler quoted in a PTI report, Indian refiners are expected to purchase 2-2.2 million barrels per day of Russian crude oil in June, reaching a two-year peak and exceeding the total quantities acquired from Iraq, Saudi Arabia, the UAE and Kuwait.”India has additionally turn into the first recipient of Russian Urals oil grade transported by sea in 2025, receiving 80% of the whole exports. The nation’s two personal refineries have considerably boosted their imports of this lower-priced crude.According to Kpler statistics referenced in a Bloomberg report, India acquired 231 million barrels of Urals by means of June 24, with Reliance Industries Ltd. and Nayara Energy Ltd. collectively acquiring 45% of Russia’s exports of this medium-sour grade.The proportion of Urals purchases by these two personal Indian refiners has steadily elevated lately, notably in 2025. Reliance has positioned itself because the world’s largest purchaser of Urals, having bought 77 million barrels within the present yr.Hence, a 500% tariff on countries importing oil from Russia may impact India very badly. Incidentally, India has additionally stepped up oil imports from America. United States crude oil exports to India noticed a considerable rise, reaching 439,000 barrels per day in June, marking a notable improve from the 280,000 barrels per day recorded in May.

Will Trump actually signal the five hundred% tariff order?

Graham has clarified that Trump would retain discretionary energy by means of a waiver provision, enabling him to determine on the invoice’s implementation ought to it efficiently move by means of Congress.“I was playing with him (Trump). He says, “It’s time to maneuver — transfer your invoice. There’s a waiver within the invoice, Mr. President. You’re in cost whether or not or not it’s to be applied.” But we’re going to give President Trump a tool in the toolbox he doesn’t have today. After the July break, we’re going to pass a bill that with allow the president,” Graham elaborated.Also Read | ‘Highest in two years’: India will increase oil imports from Russia, US amidst Iran-Israel conflict; why it’s about strategic positioning, not panic

Russia’s Response to The Bill

The Kremlin’s official spokesperson, Dmitry Peskov, addressed the remarks made by Graham on Monday, acknowledging that Russia had been monitoring the US senator’s place and had famous his latest declaration.“The senator’s views are well known to us, they are well known to the whole world. He belongs to a group of inveterate Russophobes. If it were up to him, these sanctions would have been imposed long ago,” stated Peskov.Peskov additional questioned the effectiveness of such measures by stating, “Would that have helped the (Ukraine) settlement (process)? That is a question that those who initiate such events should ask themselves.”