Following the bipartisan introduction of the 'Sanctioning Russia Act 2025' last week, Senator Lindsey Graham announced President Trump's approval of the bill via social media. It proposes 500% tariffs on goods from countries buying Russian energy products, threatening India's $85 billion annual US exports amid existing trade tensions and an impending Supreme Court ruling on tariffs.
On January 8, 2026—a day before the US Supreme Court is scheduled to rule on the Trump administration's use of the International Emergency Economic Powers Act (IEEPA) for global tariffs, including 50% on India—Republican Senator Lindsey Graham posted that President Donald Trump has greenlit the 'Russia sanctions bill.'
Building on the bill drafted with Senator Richard Blumenthal and backed after a White House meeting, the legislation imposes 500% tariffs on imports from countries knowingly trading in Russian-origin uranium and petroleum products. It also targets Russian President Vladimir Putin and select military commanders with restrictions, while slapping 500% tariffs on Russian products entering the US. This approach circumvents IEEPA legal challenges, where three lower courts have ruled against the administration.
India, without a US trade deal, faces the severest blow. It already suffers 50% US tariffs on labor-intensive sectors like textiles, footwear, and marine products. Experts predict 500% tariffs—potentially covering currently exempt electronics and pharmaceuticals—would halt India's $85 billion goods exports to the US. Unlike China's diversified portfolio, India's reliance on less tech-intensive goods leaves it exposed, undermining trade talks with the EU and ASEAN. Investments are stalling, per a Bank of America report, with the RBI selling $65 billion in reserves and the rupee down 7% amid tensions.
While recent data showed some Indian export resilience (e.g., telecom surges), the bill's escalation risks broader disruptions.
