US Moves Toward 500% Tariffs to Cut Russia’s Wartime Funds

The U.S. efforts to cut off Russia’s wartime revenue expanded on Sunday as President Donald Trump announced support for new Senate legislation. The legislation would authorise Washington to impose tariffs of up to 500% on countries still doing business with Moscow. Trump stated that Republicans are drafting tough sanctions on any nation engaging with Russia, a move supported by Senator Lindsey Graham and gaining momentum amid Congress's frustration over Russia’s ongoing attacks on Ukraine. Senate Majority Leader John Thune indicated plans to bring the measure to a vote but deferred setting a deadline.

The bill targets major buyers of Russian energy, specifically China and India, by giving Trump authority to impose heavy tariffs on imports from countries deemed insufficiently supportive of Ukraine. Trump also mentioned the possibility of including Iran, but provided no specifics. Meanwhile, Moscow has intensified efforts to capture the eastern Ukrainian rail hub of Pokrovsk and continues air strikes nationwide. Ukraine has responded with escalating long-range attacks on Russian energy infrastructure.

Many Democrats and some Republicans have long called for punitive measures, accusing Russia of prolonging the war and rejecting diplomatic efforts. Trump had previously hesitated to endorse new sanctions, attempting to bring Putin and Zelenskyy to negotiate. His hosting of Putin earlier this year in Alaska failed to produce breakthroughs.

Meanwhile, the U.S. has already imposed tariffs on India over its Russian oil purchases. In August 2025, Trump signed an executive order doubling tariffs to 50%, aiming to penalize countries indirectly funding Russia’s war effort. India has since reduced imports of Russian crude, and Trump suggested tariffs could eventually be eased, signaling a more constructive trade approach after months of friction.

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Despite sanctions, Russia remains capable of sustaining military action, with Western intelligence noting that its energy partnerships with Asian economies have lessened the impact of sanctions.

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