Trump’s 500% Tariff Bomb, Countries Buying Russian Oil On Target… India In The Line Of Fire

Washington: US President Donald Trump has sent shockwaves across global markets after declaring support for a law that could impose extremely heavy sanctions—or up to 500 percent import tariffs—on any country that continues trading with Russia. This includes energy purchases, making India one of the biggest targets of this proposed policy.

Trump stated clearly that any nation conducting business with Russia would face 'very heavy sanctions,' and even Iran could be added to the list. The objective is to weaken Russia’s economic capabilities and push toward an end to the Ukraine conflict.

Where This Sudden Flashpoint Came From

Trump revealed that Republican lawmakers are drafting a bill aimed at penalizing countries importing Russian energy products. Under this bill, any such imports could attract tariffs as high as 500 percent. India and China—Russia’s two largest energy clients—are expected to be the most impacted.

India has recently increased its intake of Russian crude oil, coal, and petroleum products. The US already has certain penalties and tariffs on India due to its purchase of discounted Russian crude, and the new bill signals an escalation of this pressure.

Why India Is Directly in the Crosshairs

India is Russia’s second-largest energy buyer. According to CREA’s October data, India imported €3.1 billion worth of Russian fuel—primarily crude oil (81 percent), followed by coal (11 percent) and oil products (7 percent). China remains at the top with €5.8 billion.

If the 500 percent tariff becomes law, India could face one of the largest economic impacts globally.

Trump has earlier imposed tariffs of up to 50 percent on some Indian imports, including a 25 percent penalty directly linked to cheap Russian oil purchases. Despite ongoing US-India discussions, no new agreement has been reached.

India’s Dilemma: Cheap Oil vs. Geopolitical Pressure

While Trump claims PM Modi assured him that oil imports from Russia would be reduced, the data contradicts that. India actually increased Russian oil imports by 11 percent in October, with private refiners contributing two-thirds of the purchases.

India maintains that its priority is protecting domestic consumers and that it will buy oil from wherever it is most affordable. Sudden changes, it says, are unrealistic given its energy needs.

India’s Response: Diversifying Energy Sources

Acknowledging rising pressure, India has accelerated diversification. Petroleum Minister Hardeep Singh Puri announced a major deal for 2.2 MTPA LPG from the US, representing 10 percent of India’s total LPG imports—its first structured LPG contract from the US Gulf Coast.

The government insists that its focus is on ensuring secure, affordable fuel for Indian households.

What Lies Ahead for India?

If the 500 percent tariff is implemented:

- India–US trade relations could suffer a major setback.

- Cheap Russian oil may become unviable, driving up domestic fuel prices.

- India will push further diversification—toward the US, Middle East, and Africa.

- Global pressure on India’s Russia ties will intensify.

However, India is unlikely to abruptly halt Russian oil purchases, as doing so would risk inflation and economic instability at home.