Sanctions | A 500% tariff storm is coming! Trump approves bill targeting Russian oil buyers.

2026-01-12

Introduction

A new US sanctions bill that could have a severe impact on multiple countries is rapidly approaching a vote. If passed, the bill would authorize the US president to impose punitive tariffs of up to 500% on countries that continue to purchase Russian oil, with India and China being the first to be affected.














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Reuters reported that US President Donald Trump has agreed to allow a bipartisan bill aimed at strengthening sanctions against Russia to move forward in Congress. Republican Senator Lindsey Graham told Reuters that Trump has given the green light to the legislative process, meaning the White House will no longer block the bill from reaching the voting stage. 

It is learned that the US Senate is expected to vote on the bill as early as next week, marking that the pressure test on Russia by Washington has been escalated to the extreme.

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According to "India Today", US Republican Senator Lindsey Graham announced on social media that President Donald Trump has approved a bipartisan sanctions bill. The bill will give the president the power to punish countries that "willfully" purchase Russian oil. Graham said the bill could be voted on as early as next week. 


The core content of the bill: Tariff weapons and "enormous influence" 

This bill, jointly proposed by Graham and Democratic Senator Richard Blumenthal, targets Russia's energy revenues. Graham stated in his post that the bill will "give President Trump 'enormous influence' over countries such as China, India, and Brazil", encouraging them to stop purchasing discounted Russian oil that funds the conflict between Russia and Ukraine. 


In addition to oil, the bill will also impose sanctions on countries that purchase uranium from Russia, and prohibit US investment in Russia's energy sector and the export of energy products to Russia. Graham emphasized that at this time, promoting this bill is "the right moment", aiming to exert maximum pressure on Russia and its trading partners through economic means. 


India is the second-largest buyer of Russian oil globally after China. If this bill is passed, India will face a real threat of the tariff rate soaring to a maximum of 500%, far exceeding the current tariff level. In 2025, the Trump administration had already imposed an additional 25% tariff on some Indian goods due to India's purchase of Russian oil, raising the total tax rate of some goods to 50%, seriously impacting the bilateral trade relationship.


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TIPS

The rapid advancement of this sanctions bill highlights that Washington is using "maximum tariffs" as a lever to force major economies - especially India and China - to accelerate the severance of energy ties with Russia, thereby completing the economic encirclement of Russia. Han Yue International will closely monitor the dynamics of tariff policies, while also making preparations for alternative markets and backup supply chains in advance to maintain flexibility. We will optimize market layouts and pre-plan alternative solutions to ensure that shippers remain resilient and flexible in the face of fluctuations. If you need the latest information or customized response plans, please feel free to contact our customer service.













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