A major decision of US President Donald Trump has created a stir in world politics as well as India’s economy. The ‘Sanctioning Russia Act of 2025’, brought to further tighten the sanctions related to Russia, has received Trump’s approval. Under this law, heavy tariffs of up to 500 percent can be imposed on those countries which are trading oil, gas or other important commodities with Russia. India is also included in such countries, hence this decision is expected to have a direct impact on India.

India has been purchasing large quantities of crude oil and other energy resources from Russia for the last few years. After the Ukraine war, when many western countries distanced themselves from Russia, India met its energy needs by buying cheap Russian oil. India also benefited economically from this. But now the new law of the Trump government has made this path difficult. If India continues to buy oil and other goods from Russia, the US can impose tariffs of up to 500 percent on products coming from India.

Which sectors will be most affected

IT and Tech Sector- India’s IT sector is largely dependent on America. A major part of the income of big IT companies comes from the American market. Due to increasing tariffs and trade tensions, American companies may reduce spending on Indian IT services. This will affect new recruitments and may also increase the risk of job cuts.

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Textile and Garment Industry- A large part of the clothes and readymade garments from India goes to America. If heavy taxes are imposed on these, Indian products will become expensive. Due to this, American buyers can turn to other countries. This will have a direct impact on the factories and lakhs of workers working there.

Pharma Sector- India is called the pharmacy of the world and America is the largest market for Indian medicines. Due to increase in tariff, Indian medicines will become expensive, which may reduce exports. This may affect the earnings and jobs of pharmaceutical companies.

Auto and auto parts- Auto parts and some vehicle parts are sent to America from India. If the tariff increases, their exports may reduce, which may create a job crisis in this sector as well.

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Trump Tariff on India: After capturing Venezuela, India and China are now the target of US President Donald Trump. Trump is now preparing to impose heavy tariffs of up to 500 percent on them. To put pressure on countries like India, China and Brazil to stop buying oil from Russia, Trump has approved a new bill named ‘Sanctioning Russia Act of 2025’. This bill has the power to change international trade and all the energy sectors of the world.

Why is this bill special?

US Senator Lindsey Graham says that through this bill the President will be able to take action against those countries which are supporting Russia’s efforts to continue the war in Ukraine by buying cheap oil from it. Through the bill, action will be taken against the countries buying oil from Russia, which will put pressure on those countries and they will stop buying oil from Russia. These countries import not only crude oil but also uranium from Russia.

This announcement, made on Wednesday, January 7, 2026, is being seen as part of the Trump administration’s ‘America First’ trade policy and its efforts to implement a ceasefire in Ukraine. After a press conference with Trump on Wednesday, Senator Graham told a press conference that this bill will give us an opportunity to put tremendous pressure on big economies like China, India and Brazil. Graham also said that by buying cheap oil from Russia, Ukraine is helping Russia in continuing the war. Ukraine is ready to compromise, while Putin is bent on killing innocents.

India’s reaction to Trump’s order

Currently 50 percent American tariff is imposed on India. If Trump imposes tariffs up to 500 percent, it will be nothing less than an economic disaster for many countries including India. This would actually be like imposing a complete trade ban on some of the world’s biggest economies.

India has called this pressure from America unfair and unreasonable because the most important thing for India is to ensure energy security for its population of 1.4 billion people. It is clear from the data of 2025 that India has already reduced buying oil from Russia. Reliance Industries and other government refineries have reduced oil purchases from Russian companies like Rosneft and Lukoil. Meanwhile, India has also increased the purchase of crude oil from America by about 11 percent.

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