US backtracks on 500% Russian oil tariff proposal, bringing major relief to India and China

India and China have received temporary relief after US lawmakers revised a proposed sanctions bill targeting countries that continue importing Russian oil and natural gas. The updated proposal reduces the maximum tariff on the largest buyers of Russian energy from 500% to 100%, easing concerns over the potential impact on global trade and energy markets.

The revised bill is part of a broader US effort to increase economic pressure on Russia over the ongoing Ukraine conflict. While the legislation still seeks to discourage purchases of Russian energy, lawmakers softened the tariff provisions to build wider political support and provide the US President with greater flexibility in implementing sanctions.

India has emerged as one of the largest importers of discounted Russian crude since 2022, making the original 500% tariff proposal a major concern for policymakers and businesses. The reduced tariff proposal is expected to lessen immediate pressure on India's energy imports and trade relations with the United States, although the bill has yet to become law.

The development is being closely watched by global markets, as any future sanctions could influence oil prices, international trade, and diplomatic ties between the US, Russia, India, and China.