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New Delhi: The United States is preparing to take extreme measures regarding tariffs on India and China. The Trump administration has threatened to levy a 500 per cent tax on goods coming to America from India and China from next week. The US has said that the high tariffs are being imposed to put pressure on countries buying cheap oil from Russia. US Senator Lindsey Graham has made a statement about this. He said that President Donald Trump has approved the Russian sanctions bill. If this bill is passed, it will have a profound impact on global trade.
Senator Lindsey Graham said that President Trump has given his approval to pursue the Russian sanctions bill. This was presented by Bill Graham and Senator Richard Blumenthal. Graham says that the meeting with Trump was very positive. Only after this, this bill was given a green signal. Next week it can be brought for voting.
American leaders say that India, China and Brazil are buying cheap oil from Russia. This is helping Russia financially. The United States considers it a protracted step in the Ukraine war. For this reason, there is a plan to put pressure on these countries. The new bill will give the US the strength to take strict action against such countries.
If this bill is passed, the US tariff on India and China can be increased by 500 percent. This increase will be many times higher than the current tariff. US senators believe that the countries concerned will reduce their purchase of Russian oil. This move can create a stir in global trade. This will have a direct impact on the export companies of India and China.
In 2025, President Trump imposed a tariff of 25 percent on Indian imports. With this, an additional tariff of 25 percent was added on purchasing Russian oil. Thus the total tariff was increased to 50 percent. This caused tension in the trade relationship between India and the United States.
Amid the 50 per cent US tariffs on Indian products, representatives of the Leather sector had a meeting with the Parliamentary Standing Committee on Commerce in Chennai and raised concerns flagging issues arising from high US tariffs. The high tariffs are hurting exports, the delegation said. The higher US tariffs have adversely impacted the competitiveness of Indian leather exports in the US market. Notably, the US is one of India's key export destinations. If the Trump administration goes ahead with the imposition of 500 per cent tariffs on Indian goods, then several sectors, including the leather industry will be severely impacted.
Textiles and apparel, Gems and jewellery, Leather and footwear, Marine products, Chemicals and Automobile components. The bilateral goods trade between the US and India was recorded at around USD 129.2 billion in 2024.
Meanwhile, Niti Aayog in its latest edition of the 'Trade Watch Quarterly' for April–June 2025 advocated for strategic measures, including reducing tariffs and reorienting production towards high-demand segments such as passenger vehicles, to enhance competitiveness and global positioning.
"To enhance competitiveness and global positioning, India needs strategic measures that include reducing tariffs, boosting two-way trade and cross-border platform participation, and reorienting production toward high-demand segments such as passenger vehicles," it said.
The US has already imposed tariffs on China up to 145 percent. In response to this, China imposed 125 percent tariffs on American products. This further worsened the relationship between the two countries. Now the situation may become more stressful with the new bill. Experts believe that this can have an impact on the global economy.
