US President Donald Trump on Friday expressed support for a Senate measure that the US could impose rates up to 500% on imports from countries that still buy Russian energy. “It would be good for me,” he said.
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Based on reports, the proposal names oil, natural gas, petroleum products and uranium as covered commodities and highlights major buyers such as India and China.
The move has been described as a tool aimed at squeezing Russia’s export revenues, but the measure remains proposed and has not become law.
Tariffs of up to 500% on energy imports
Reports have revealed that the bill would give the president the power to impose punitive tariffs – up to 500% – on goods originating from any country deemed to be substantially trading in Russian energy.
JUST IN: 🇺🇸🇷🇺President Trump approves bill allowing 500% tariffs on countries trading with Russia. pic.twitter.com/qaBKVUMwTN
— BRICS News (@BRICSinfo) November 17, 2025
Lawmakers behind the text say the measure is aimed at energy purchases that help finance Moscow. How the rate would be applied, and the exact list of goods and exceptions is still being worked out in committee.
Legal experts warn that a 500% tariff would raise immediate questions about trade rules and possible retaliation.
Immediate shock to risk assets
The markets reacted quickly. Crypto traders headed for the exits in the first hours after the news, increasing the volatility of key tokens.
Nearly $620 million worth of crypto positions were liquidated within 24 hours, forcing out more than 152,000 traders, with a single $30 million BTC-USD order on Hyperliquid being the biggest hit.
Important altcoins such as XRP, Solana and Cardano saw sharp swings, and Ethereum fell to the $3,000 level.
Bitcoin took a 1% hit after the news. In the past week, BTC has lost almost 10% of its value since hitting an all-time high of $126,000 on October 6, 2025.
The crypto market is very sensitive to geopolitical trade shocks. Analysts warn that a proposed 500% tariff on countries trading with Russia – significantly higher than previous tariffs that caused a $200 billion fallout – could trigger serious panic selling.
Analysts believe that if the large-scale tariff comes into effect, its short-term effect could reduce the prices of Bitcoin and major altcoins by 10% to 20% due to increased economic uncertainty and panic.
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Wider economic ripples and energy prices
If the tariffs were ever applied, energy flows would be disrupted. That could push up crude oil and gas prices, and higher energy costs tend to feed into inflation.
Central banks could respond by keeping rates higher for longer, which could hurt risky assets including crypto. Yet history shows that once a new price regime comes into effect, people sometimes seek alternatives to cash and bank deposits. That dynamic is part of why crypto markets are watching this proposal so closely.
Featured image by David Hume Kennerly/Getty Images, chart from TradingView