Based on reports, the proposal names oil, natural gas, petroleum products and uranium as covered goods and highlights major buyers such as India and China.
The move is described as a tool meant to squeeze Russia’s export revenues, but the measure remains proposed and has not become law.
Legal experts warn that a 500% duty would raise immediate questions about trade rules and possible retaliation.
Markets reacted fast. Crypto traders moved to the exits in the first hours after the news, pushing volatility up across major tokens.
Nearly $620 million in crypto positions were liquidated in 24 hours, forcing over 152,000 traders out, with a single $30 million BTC-USD order on Hyperliquid being the largest hit.
The crypto market is highly sensitive to geopolitical trade shocks. Analysts warn that a proposed 500% tariff on countries trading with Russia—significantly higher than past rates that caused a $200 billion wipeout—could trigger severe panic selling.
Analysts believe that if the large-scale tariff is brought into effect, its short-term effect could decrease Bitcoin and major altcoins’ prices by 10% to 20% due to increased economic uncertainty and panic.
If the tariffs were ever applied, energy flows would be disrupted. That could push crude and gas prices higher, and higher energy costs usually feed into inflation.
Central banks might respond by holding rates higher for longer, which can hurt risk assets including crypto. Yet, history shows that once a new price regime takes hold, 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 from David Hume Kennerly/Getty Images, chart from TradingView
