U.S. considers 500% tariffs on countries buying Russian oil: what Graham’s bill proposes
In June 2025, U.S. Republican Senator Lindsey Graham publicly announced a legislative initiative that could significantly reshape global trade dynamics with Russia. The proposal envisions 500% tariffs on imports from countries that continue purchasing Russian energy including oil, gas, coal, uranium, refined oil products, and petrochemicals. Graham’s stance is direct: if a country helps fund Russia’s war effort by buying its energy exports, it should pay a financial price. But what exactly does this bill entail? Why now? And what could the consequences be not just for Russia, but also for countries like India, China, or Turkey?
What the bill proposes
According to Senator Graham, the bill unofficially dubbed the “STOP Funding Russia Act” includes:
- 500% tariffs on imports from countries that purchase Russian energy resources, regardless of whether they are allies of the U.S.;
- Applies not only to crude oil but also to natural gas, coal, uranium, and petrochemical products;
- It does not mandate that the President impose tariffs, but grants executive authority to do so selectively;
- Sanctions could be implemented on a case-by-case basis, allowing for targeted pressure.
This represents a major shift: the U.S. is no longer just responding to Russian actions, but directly targeting third-party countries whose economic choices help sustain Moscow’s war economy.
Why now?
1. Russia’s financial survival still depends on energy exports
Despite Western sanctions, Russia continues to earn tens of billions of dollars annually from energy exports, particularly to India and China.
- Analysts estimate that India and China now purchase around 70% of Russian oil.
- Much of this trade happens through sanctions-evasion tactics shadow fleets, reblending, and indirect resales.
- For the U.S., this makes India and China de facto enablers of Putin’s war funding.
2. Trump’s backing makes this a real possibility
Graham revealed that during a casual golf game, President Donald Trump personally endorsed the bill:
“The President told me, ‘It’s time to push your bill forward.’”
Unlike many other initiatives stalled by partisan gridlock, this one has 84 co-sponsors in the Senate, signaling broad bipartisan support. Trump’s endorsement gives the bill real momentum under his current presidency.
What happens if the bill passes?
✱ 500% tariffs are not symbolic
Such tariffs would effectively block imports from targeted countries. The goal is not revenue it’s deterrence.
For example:
- If India exports pharmaceuticals or textiles to the U.S.
- While also purchasing discounted Russian oil,
- Its products could become uncompetitive due to extreme tariff costs.
This gives Washington a powerful tool to pressure not just adversaries, but also “neutral” states that continue doing business with Russia.
✱ Main targets: India and China
Graham:
“I want India and China to understand if you help Putin economically, you will face a 500% tariff.”
However, the approach differs:
- China is viewed as a strategic rival, with little expectation of cooperation.
- India, on the other hand, is a key partner in Quad and G20 frameworks. Here, the bill acts more as a warning than an ultimatum for now.
Revelant
Legal framework: can Trump actually enforce this?
A federal appeals court has already confirmed that the President has the authority to impose global tariffs in the interest of national security. Graham’s bill would expand those powers, giving the White House a clear legal instrument for action.
This means:
- If the bill passes, implementation is at the President’s discretion;
- It becomes a negotiation tool, not necessarily an automatic sanction;
- Tariffs may not be imposed immediately, but the threat alone changes the bargaining landscape.
Who could be affected?
1. India
- Russia is a key supplier of discounted crude for India’s refineries.
- But access to the U.S. market is also strategically vital.
- Delhi may soon face a hard choice: adjust trade policy or risk losing access to American consumers.
2. China
- Unlikely to be swayed by tariffs alone.
- But such legislation adds to the ongoing economic decoupling between Washington and Beijing, accelerating China’s shift toward self-reliance or new markets.
3. Other nations
- Countries like Turkey, the UAE, Kazakhstan, or Brazil which maintain ties with Russia could also find themselves in Washington’s crosshairs.
- The bill serves as a line in the sand signaling limits to tolerated trade behavior.
Senator Graham’s proposal is more than a sanctions tool. It’s an attempt to reshape global trade norms turning economic neutrality into liability. If enacted, even without immediate enforcement, this bill would mark a critical shift in Washington’s economic statecraft. It targets not just Russian entities but those around the world who help Moscow stay afloat by maintaining demand for its exports. What matters now is what happens after July 7, when Congress reconvenes. And this time, bipartisan consensus is not just rhetoric. It could become law and a powerful lever of global pressure.
About the Author
