Tariffs, Tensions and Trade: Trump’s Sanctions Bid Puts Beijing and New Delhi in the Crosswinds

In the intricate choreography of global diplomacy and economic policy, decisions made in one capital can echo across continents and markets. This week, U.S. political leaders signalled a potentially significant shift in how the world’s biggest energy consumers interact with one of the most controversial suppliers of crude: Russia.

According to U.S. Senator Lindsey Graham, President Donald Trump has given his backing to a bipartisan sanctions bill that would allow the United States to impose punitive measures on countries that continue to buy Russian oil amid Moscow’s ongoing war in Ukraine. The proposed legislation, known as the Sanctioning Russia Act of 2025, is designed to tighten the economic screws on Russia by targeting revenue streams that help sustain its military operations.

At the heart of the bill is a novel approach: it would give Washington leverage over major energy importers such as China and India, and potentially Brazil, by authorizing tariffs of up to 500 per cent on goods from countries that knowingly engage in the exchange of Russian oil or related exports. The legislation aims to discourage partners from continuing energy purchases that, lawmakers argue, indirectly finance Russia’s war machine.

Senator Graham, who has helped steer the bill through months of bipartisan discussions alongside Democratic Senator Richard Blumenthal, said on social media that he and President Trump had a “very productive” meeting in which the president “greenlit” the bill’s advancement toward a congressional vote. He described the measure as “well-timed,” given ongoing peace talks in Ukraine and continued Russian military aggression.

The broad contours of the bill would also empower the United States to hit financial institutions tied to Russia, slash U.S. energy exports to Moscow, and impose secondary tariffs on nations whose energy purchases sustain Russian revenues — a provision seen as a direct challenge to countries that have relied on Russian crude to meet domestic demand.

For China and India, which together account for a substantial share of Russia’s exported oil — estimates suggest China has taken roughly half of Russian crude exports while India accounts for about a third — the proposed sanctions represent a diplomatic and economic headache. Both countries have pursued energy deals with Moscow in recent years, driven largely by market considerations and their own strategic interests.

In India’s case, the U.S. has already applied tariffs on certain Indian imports, a move previously linked to New Delhi’s Russian oil purchases, and discussions about further duties have been part of broader trade negotiations between the two nations. China, meanwhile, continues to be one of Russia’s largest energy partners, underscoring how intertwined global energy markets remain despite geopolitical frictions.

Critics of the bill — including some international economists — warn that punitive tariffs of the magnitude discussed could unsettle global trade flows and strain diplomatic relations between Washington and key economic powers. They caution that countries might view such measures as overreach, potentially prompting retaliatory actions or shifts in alliances. Others counter that a robust sanctions regime against Russia and its energy customers may be a necessary pressure point to bring Moscow back to the negotiating table.

Beyond the immediate geopolitical calculus, this legislative push highlights how energy policy has become a nexus of strategic competition, economic leverage and international law. As the bill moves toward a potential vote in Congress — one that could unfold as soon as next week — the world will be watching not only how it fares within the U.S. political system but how Beijing, New Delhi and other affected capitals respond to what would be a sweeping re-definition of sanctions policy in a deeply interconnected global economy.

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Sources Times of India — Trump greenlights Russia sanctions bill; could impact India & China Reuters — Senator says Trump will allow Russia sanctions bill to advance Al Jazeera — Trump backs bill to sanction China, India over Russian oil The Daily Star — Trump backs Russia sanctions targeting energy buyers