A new bill under consideration in the US Senate, supported by President Donald Trump, seeks to introduce steep tariffs — as high as 500% — on countries like India and China that continue economic ties with Russia. Republican Senator Lindsey Graham revealed the proposed legislation during an interview with ABC News, framing it as a measure to cut off financial support for Russia’s war in Ukraine.

“If you’re buying from Russia and not aiding Ukraine, your goods will face a 500% tariff in the US,” Graham said. He highlighted that India and China are responsible for about 70% of Russia’s oil revenue, indirectly sustaining its military operations.

Set to be introduced in August, the bipartisan bill — co-sponsored by Graham and Democratic Senator Richard Blumenthal — already has the backing of 84 lawmakers. Its core goal is to economically isolate Russia and push it toward negotiating peace.

The proposed legislation could have major consequences for India, which has significantly increased purchases of discounted Russian crude since the Ukraine conflict began in early 2022. In the third year of the war, India reportedly imported over €49 billion worth of Russian oil. The tariffs could also affect other major Indian exports to the US, including pharmaceuticals, textiles, and software services.

The bill's emergence comes amid efforts to finalise a bilateral trade agreement between India and the United States. US Treasury Secretary Scott Bessent recently commented that the deal is “very close” to completion, though discussions continue, particularly over unresolved agricultural issues.

Graham said the push to move forward came after a recent conversation with Trump during a golf game. “The President told me, ‘It’s time to move your bill,’” he said.

Initially introduced in March, the bill saw delays after the White House under Trump asked the Senate to revise some of the bill’s stricter language — suggesting a shift from mandatory to discretionary enforcement. Graham has since proposed exemptions for countries that actively support Ukraine to address concerns from US allies in Europe.

If the bill passes, it could reshape US trade policy and strain relations with key partners such as India and China. Given America’s significance as a top trading destination for India, the economic and diplomatic stakes are high.