US 500% Tariff Threat: Bad News for India's Russian Oil?

Hey all! The U.S. President Donald Trump has given his ok to an aggressive bill that is going to possibly hit India with up to a 500% tariff! Why? Because India has purchased discounted Russian oil. Republican Senator Lindsey Graham made this announcement after his meeting with Trump at the White House stating that it was a way for the United States to further starve Russia’s capability to wage war against Ukraine. If this bill passes (which will be voted on possibly next week), it will heavily impact countries such as India, China, and Brazil. Let’s take a deeper dive into the details of the actual bill.

The Graham-Blumenthal Bill: This bill gives the President the ability to place sanctions or 500% tariffs on countries that purchase oil and gas and uranium from Russia or any other type of product that finances the war efforts being conducted by President Putin.

Donald Trump has shown support for this bill. On Wednesday Graham met with him and the White House stated their support for this bill. There are bipartisan co-sponsors for this bill in the Senate as well as a version being drafted in the House.

The timing for this bill coincides with a continued war in Ukraine and the 4th year of hostilities. There are those in Trump’s circle, including Steve Witkoff and Jared Kushner, that are pushing for peace negotiations but the Graham-Blumenthal Bill will continue to put pressure on President Putin while Ukraine continues to offer some level of concessions.

The White House had requested that some adjustments be made to the bill to include some level of flexibility, but it has been moving quickly and the Senate recess will probably not affect the timing of the vote on this bill.

Why India Is in the Crosshairs: Since the War in Ukraine began, India has purchased a significant amount of discounted Russian Oil, and this is viewed as an excellent move for India as it has allowed for lower inflation and growth for India.