Proposed Law Slaps 500% Tariff on Russian Imports, Threatening Global Supply Chains

This bill, the Sanctioning Russia Act of 2025, is essentially an economic sledgehammer designed to flatten Russia’s ability to fund its government and military. It sets up a mandatory, recurring system of sanctions that kick in every time the President determines Russia is refusing serious peace talks, breaking an existing peace deal, or starting a new military action against Ukraine (Sec. 4).

Once that determination is made—and it has to be reviewed every 90 days—the U.S. government is required to impose severe, mandatory sanctions. This isn’t a suggestion; it’s a requirement. The bill targets everyone from the Russian President and the entire military leadership down to specific financial institutions, state-owned entities, and even individuals who knowingly conduct transactions with the Russian Armed Forces (Sec. 5, 6).

The Nuclear Option: Freezing Assets and Cutting Off Banks

For the officials and entities targeted, the penalties are immediate and harsh. Their property and assets in the U.S., or under the control of any U.S. person, must be completely frozen. This is done using the International Emergency Economic Powers Act (IEEPA), but here’s the kicker: the bill specifically bypasses the usual requirement for the President to declare a national emergency first (Sec. 6, 7). This means the administration can move instantly to seize assets and cut off banks without that standard check-and-balance step.

For you, this means U.S. financial institutions—your bank, your brokerage—are completely banned from doing any kind of transaction with the Central Bank of Russia, Sberbank, VTB Bank, or any other state-owned Russian financial institution (Sec. 6). If you work for a U.S. financial firm, you are also banned from investing money in the Russian energy sector or buying Russian government debt (Sec. 10, 12). If you own stocks, the SEC must kick any Russian government-affiliated company off U.S. stock exchanges within 15 days of the trigger determination (Sec. 9).

The 500% Import Tax: What It Means for Your Wallet

The most eye-popping part of this bill is Section 15. Once the sanctions are triggered, the President must immediately impose a minimum 500% ad valorem duty on all goods and services imported from the Russian Federation. This isn't a typo. If a Russian product costs $100, the tax alone would be $500, making the final price $600. This massive tariff applies to everything, including energy products like oil and natural gas (Sec. 15).

This provision effectively slams the door shut on trade with Russia. While it sounds good for putting pressure on the Kremlin, it’s worth thinking about the ripple effects. If U.S. industries rely on specific Russian raw materials or niche products—like uranium, which is also banned under Section 14—the sudden loss of supply, combined with a 500% tariff on alternatives, could lead to higher costs that eventually filter down to U.S. consumers.

The Global Catch-22: Punishing Third Parties

This bill doesn't stop at Russia; it introduces massive secondary sanctions that could disrupt global trade. Section 17 states that if the President determines another country is knowingly buying Russian oil, uranium, natural gas, or petrochemicals, that country gets hit with the same 500% import duty on all of its exports to the U.S. (Sec. 17).

Imagine a country that needs Russian oil to power its manufacturing, but also exports finished goods to the U.S. If the President decides they are 'knowingly' buying Russian energy, the 500% tariff applies to all of their exports here. The President can only waive this tax for 180 days, and only if it’s necessary for U.S. national security. This provision is designed to force every nation to choose sides, but it carries a high risk of disrupting supply chains and potentially straining relationships with allies who rely on Russian resources.