Amidst ongoing trade discussions, a US Senator has issued a strong warning to India, China, and Brazil regarding their continued importation of discounted Russian oil. Senator Lindsey Graham, along with Senator Richard Blumenthal, has cautioned these nations of potential economic repercussions, including tariffs reaching up to 500%.
Speaking on Fox News, Graham stated, "If you [INDIA, CHINA, and BRAZIL] keep buying cheap Russian oil… we're going to tariff the hell out of you". He further added, "And we're going to crush your economy, because what you are doing is blood money," accusing these countries of funding Vladimir Putin's war efforts.
This announcement coincides with escalating political pressure in Washington. A bipartisan Senate bill, led by Graham and Blumenthal, proposes imposing tariffs of up to 500% on imports, including oil, gas, and uranium, from countries that continue to trade with Russia. This bill, known as the Sanctioning Russia Act of 2025 (S. 1241), has garnered support from over 80 co-sponsors.
Adding to the pressure, President Donald Trump has also warned of 100% tariffs if Russia does not agree to a peace agreement within 50 days. NATO Secretary-General Mark Rutte has echoed these sentiments, suggesting that secondary sanctions could significantly impact countries like China, India, and Brazil. The EU has also adopted its own oil price cap with the goal of diminishing Russia's oil revenues.
India, China, and Brazil currently account for approximately 80% of discounted Russian crude purchases. A 100% tariff could severely disrupt their trade balance and energy supply chains. While markets have largely interpreted Trump's threats as a strategic maneuver, concerns remain about potential increases in global energy prices.
According to the US, India, China, Brazil, and other nations are seen as supporting Russia's war in Ukraine by purchasing inexpensive Russian oil and gas. The US asserts that the revenue generated from these sales is contributing to the conflict in Ukraine. In an effort to end the war, the Trump administration is threatening to impose tariffs of 500% on any country that assists Russia. The senators stated that the 500% tariff and 100% secondary tariff on Russia are intended to end the war and bring Putin to the negotiating table.
In response to the US threat, India's External Affairs Minister S Jaishankar stated earlier this month that the Indian embassy and ambassador have been in contact with Senator Graham regarding the bill on Russia and that India will address the situation if it arises.