Trump has approved a tough new Russia sanctions bill that could impose up to 500% tariffs on countries like India for buying Russian oil, aiming to cut off funding for Moscow’s war in Ukraine

Why Is the US Using 500% Tariffs to Pressure Russian Oil Buyers (Image Source: X/ @Mini_220)
The Donald Trump-led U.S. administration is planning to impose strict new sanctions on Russia, aiming to curb its military actions in Ukraine, where the war began in 2022. The legislation, called the Sanctioning Russia Act of 2025, would allow the U.S. to levy tariffs of up to 500% on countries “that knowingly engage in the exchange of Russian-origin uranium and petroleum products.” The goal is to cut off funding for Russia’s war machine while pressuring allies and partners who trade with Moscow.
Republican Senator Lindsey Graham confirmed that President Trump has “greenlit” the bipartisan sanctions bill following a meeting on Wednesday.
In his post on X, Graham said, "After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator Blumenthal and many others." Explaining the crucial timing of the bill, the executive further added, "Ukraine is making concessions for peace and Putin is all talk, continuing to kill the innocent."
"This bill will allow President Trump to punish those countries who buy cheap Russian oil fueling Putin’s war machine. This bill would give President Trump tremendous leverage against countries like China, India and Brazil to incentivize them to stop buying the cheap Russian oil that provides the financing for Putin’s bloodbath against Ukraine."
After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator Blumenthal and many others.
— Lindsey Graham (@LindseyGrahamSC) January 7, 2026
This will be well-timed, as Ukraine is making concessions for peace…
The US is planning to impose up to 500% tariffs on countries like India for buying Russian oil as part of its effort to cut off Russia’s war funding. Under the Sanctioning Russia Act of 2025, Washington wants to pressure nations that purchase cheap Russian energy, which US leaders say helps Moscow continue the Ukraine war. While the Trump administration has approved the bill, India has defended its oil imports, saying they are based on national interest and fuel affordability, not politics.
Graham emphasized that the bill would allow the U.S. to punish countries buying cheap Russian oil, which he claims finances Putin’s war in Ukraine. He added that it would provide “tremendous leverage against countries like China, India and Brazil to incentivize them to stop buying the cheap Russian oil that provides the financing for Putin’s bloodbath against Ukraine.” Graham also noted that the timing of the bill is strategic, “This will be well-timed, as Ukraine is making concessions for peace and Putin is all talk, continuing to kill the innocent.”
The bill has been primarily drafted by Senators Lindsey Graham and Richard Blumenthal. It authorizes the U.S. government to impose tariffs and secondary sanctions on countries importing Russia’s oil, gas, uranium, and other exports. By restricting these purchases, the legislation aims to cut off financial support for Russia’s military operations in Ukraine, according to reports.
Ending the Ukraine-Russia conflict is a key priority for Trump, who pledged to work toward peace from the start of his term. The administration is reportedly negotiating between the two countries with Special Envoy Steve Witkoff and Jared Kushner, Trump’s son-in-law, acting as chief negotiators.
Despite Trump approving the sanctions bill, its passage in Congress has been delayed. Reports from Bloomberg suggest the delay is due to Trump’s preference for a diplomatic approach first, before fully enforcing economic penalties.