500% Tariffs & Other Sanctions Looming on Russia And Its Trading Partners

Sep. 5, 2025
By: Pietro N. Bianchi

A bill before the Senate, the Sanctioning Russia Act of 2025, that would impose primary and secondary tariffs and other sanctions on Russia is gaining traction. The bill aims to pressure Russia into ending its war in Ukraine and has overwhelming bipartisan support with 84 cosponsoring senators. Specifically, the bill would impose sanctions on certain persons, financial institutions, and other entities of or affiliated with Russia. The bill further places prohibitions, including services to sanctioned financial institutions by international financial messaging systems.

The bill would also increase duties on goods and services from Russia to “a rate of not less than the equivalent of 500 percent.” You read that correctly - it’s a minimum rate of 500% and the bill provides that the President can set a higher rate. This minimum rate of 500% would also be placed on goods and services from countries that buy Russian oil, gas, or uranium. Any antidumping and countervailing duties would be assessed in addition to the 500% rate.

Currently, goods from India are subject to a 25% tariff rate for purchasing Russian oil under International Emergency Economic Powers Act (IEEPA). Where a 25% tariff can be a barrier to trade, a 500% tariff will likely mean a cease in trade. Notably, if this bill is passed the 500% rate will not be subject to the same legal challenges as the IEEPA tariffs.

Assuming the bill is passed by the Senate, it will still have to be passed by the House and sent to the President before being enacted into law. But this process may be expedited by the overwhelming bipartisan support. If you have questions about sanctions or trade remedies do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.