There has been an atmosphere of tension between America and India for a long time. It is being said that relations between India and America may become more sour in the coming days. In fact, US Senator Lindsey Graham claimed that US President Donald Trump has given the green signal to a bill imposing sanctions on Russia, which will stop India, China and Brazil from buying Russian oil. According to the official website of the US Congress, the name of this bill is Sanctioning of Russia Act 2025. One of its many provisions is that countries that knowingly buy uranium and petroleum products from Russia can be imposed a 500% tariff in America. In such a situation, let us now tell you whether no one can stop Trump from imposing 500% tariff on India. And what is the law of America?

What is Sanctioning of Russia Act 2025?

The Sanctioning of Russia Act 2025 presented in the US Congress is a bill with very stringent provisions. According to US Senator Lindsey Graham, President Trump has given the green signal to this bill and voting on it can take place next week. This is a bipartisan proposal, which is expected to get the support of both Democrats and Republicans. According to the information released by the American side, under this law, the American President will have the right to increase the import duty on all goods and services coming from Russia to America by at least 500 percent. Not only this, this provision will also apply to those countries which knowingly trade Russia’s petroleum and uranium products.

Why can India come under target?

Since the start of the Ukraine war, India has been among the major countries buying Russian crude oil at concessional rates. America considers this as indirect support to Russia’s economy. For this reason, President Trump has already imposed an additional 25 percent tariff on India, taking the total duty to 50 percent. Now, if the new law comes into force, America can get the right to impose tariffs up to 500 percent on goods and services coming from India.

Can anyone stop Trump?

The special thing about this bill is that very wide powers have been given to the President in it. If this bill is passed by the US Congress, it will not be easy to legally stop Trump from imposing tariffs. This decision will depend on the President’s assessment as to which country is benefiting Russia through Russian energy trade.

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US India trade tension: The trade tensions between India and America are showing no sign of abating. Just last week, an Indian delegation returned from Washington. Which was led by Commerce Secretary Rajesh Aggarwal. He informed that trade talks between the two countries have been positive.

At the same time, on Monday, US President Donald Trump has given a strict warning saying that if India does not stop buying crude oil from Russia, it will have to face heavy tariffs. He also compared India with Hungary. Trump said that Hungary is trapped because it is also dependent on the pipeline of the same country.

What does Trump have to say?

While talking to reporters in Air Force One on Monday, Trump said, I have spoken to Prime Minister of India Modi. He told me that India will not do crude oil deals with Russia. However, when the Indian Central Government said that there was no such thing. To this, Trump replied that, if India wants to buy crude oil from Russia, then it should be prepared for heavy tariffs and I do not think that they would want that.

Donald Trump told during a lunch at the White House with Ukrainian President Vladimir Zelensky that India fulfills 38 percent of its oil needs from Russia, but now India is retreating from this step. The US President is threatening huge tariffs on India. America has already imposed 50 percent tariff on India. On one hand, trade talks are going on between the two countries. At the same time, due to this statement of Trump, there may again be severe turmoil in the market.

India has replied

India has given its response on many forums regarding the American tariff and its continuous pressure. The central government said that its energy policy is completely based on the interests of the country. The Indian government wants to protect its citizens from fluctuations in global oil prices. India does not want to make itself dependent on any one country by purchasing oil from different countries. So that, in future, there will be no dependence on any one country and the import of oil in the country will continue continuously.

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Foreign investors outflow: Foreign institutional investors (FIIs) are constantly withdrawing from the Indian stock market due to trade tension between India and America, fall in rupee and weak results of the first quarter of companies. In the first fortnight of August itself, foreign portfolio investors (FPI) have sold around Rs 21,000 crore.

According to the latest deployment data, in the year 2025, the FPI has so far withdrawn a total of Rs 1.16 lakh crore from the Indian stock market. Experts believe that further their stance will be decided by activities on the American tariff front.

Foreign investors withdrawing money from the market

Senior Basic Analyst (CFA) Waqar Javed Khan of Angel One said that recent tension between the US and Russia has reduced and new restrictions have not been imposed. In such a situation, the additional fee (secondary tariff) proposed on India (secondary tariff) is less likely to be implemented after August 27. This is considered a positive sign for the market. He also said that S&P has increased India’s credit rating from BBB-to BBB, which can strengthen the notion of FPI.

Depository figures show that FPI made a net withdrawal of Rs 20,975 crore from shares in August (till 14 August). In July too, he had withdrawn Rs 17,741 crore from the market. However, he invested Rs 38,673 crore in three months between March and June.

What do experts say

Himanshu Srivastava, Associate Director of Morningstar Investment Research India, says that the main reason for the frequent withdrawal of FPI is global uncertainty. The confusion over the geopolitical tension, the US and other developed countries, and the strength of the US dollar have reduced the attraction of emerging markets like India.

The main investment strategist V.K. According to Vijayakumar, weak results and high valuations of companies are also a major cause of FPI selling. However, during the period under review, FPI has also invested Rs 4,469 crore in bonds and Rs 232 crore by voluntary retention route.

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