The United States has signaled support for a sanctions bill proposing tariffs of up to 500% on countries that continue to import Russian energy.
Attention has turned to Washington after US President Donald Trump backed the Sanctioning Russia Act of 2025, a proposal that could allow tariffs of up to 500% on imports from buyers of Russian energy.
The proposed legislation has not been enacted and must still clear both houses of the US Congress. Analysts view the move largely as a geopolitical pressure tactic rather than an immediate trade action, though the scale of the proposed tariffs has unsettled markets and exporters.
India, China, and Brazil are considered among the most exposed economies due to their continued purchases of Russian oil and gas. In response, India has intensified diplomatic outreach to the United States, engaging with American lawmakers and officials to underline its energy security requirements and highlight a gradual reduction in Russian crude imports. New Delhi has also stressed its broader strategic partnership with Washington and its efforts to diversify energy sourcing where feasible.
If implemented, a tariff of this magnitude would make exports to the US commercially unviable, potentially forcing a redirection of trade flows toward alternative markets and accelerating supply chain adjustments.
For now, the proposal remains under legislative consideration, but its political backing is already influencing trade sentiment and long term planning across global markets.
Source: Reuters
