US Senate Eyes Tariffs on Russian Oil Buyers India & China
A new bipartisan bill in the US Senate proposes imposing steep tariffs on countries that continue to buy Russian oil, with India and China specifically in focus. The legislation, known as the Sanctioning Russia Act of 2025, aims to reduce Moscow’s energy earnings by penalising major importers.
Bill Details and Tariff Rates
Under the bill, the US could impose a 500% tariff on imports of Russian crude, refined petroleum, natural gas, and uranium. The goal is to drastically cut revenue flowing into Russia amid its ongoing war in Ukraine and push for peace negotiations.
Why India & China Are Targeted
India and China jointly account for nearly 70% of Russia’s energy exports, making them central to efforts aimed at reducing Russian income. India alone sourced about 35% of its crude oil from Russia in 2024, benefiting from discounted supply due to global sanctions. The bill seeks to deter such purchases by threatening extreme price penalties.
Executive Waiver Power
The bill includes provisions giving the President the power to waive tariffs for up to 180 days, subject to congressional oversight. This allows flexibility, enabling adjustments based on diplomatic or geopolitical shifts. The legislation is being finalized in the Senate ahead of the August congressional recess.
Global Repercussions
Critics warn that imposing massive tariffs could unsettle global energy markets and drive up fuel prices, while supporters argue the move is necessary to curtail Russia’s war funding. The Kremlin has cautioned that such actions could halt diplomatic progress toward ending the conflict. European allies and Ukraine have reportedly been informed and involved in discussions around the legislation.
With growing bipartisan support in the US, the bill may pass soon—but it could also strain US relations with key energy-importing partners like India and China.
