US Bill Puts India at Risk of 100% Tariff Over Russian Oil
- By Thetripurapost Web Desk, Washington
- Sep 17, 2026
- 212
India’s continued purchases of Russian crude have come under renewed pressure after the US Congress approved legislation that would give President Donald Trump authority to impose tariffs of up to 100% on major buyers of Russian oil and gas.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 cleared the US House of Representatives on September 16 by 262-159, after passing the Senate by 86-11 on August 7.
The legislation has now been sent to President Trump for his signature. Until it is signed, it has not become US law.
The measure is particularly significant for India because New Delhi has sharply increased its purchases of Russian crude since the Russia-Ukraine war began.
Why India Could Face Higher US Tariffs
The legislation authorizes the President to impose targeted duties of up to 100% on the top five countries importing Russian-origin crude oil or natural gas, as well as countries identified as major facilitators of Russian sanctions evasion.
India and China are among the major buyers potentially exposed to the provision. The legislation also contains an exemption framework for countries whose Russian natural-gas imports account for less than 15% of Russia’s total gas exports and which are taking significant steps to reduce their dependence.
The measure also targets Russian officials, financial institutions, energy interests and the network of vessels commonly referred to as Russia’s “shadow fleet.”
India’s Russian Oil Dependence Has Grown Sharply
Russian crude became increasingly important to India after Western sanctions and price restrictions reshaped global energy markets following Russia’s invasion of Ukraine.
India expanded purchases of discounted Russian oil, turning Moscow into one of its principal crude suppliers.
This has helped India secure energy supplies at competitive prices, but it has also increased the country’s exposure to sanctions-related trade measures from Washington.
The latest legislation therefore creates a difficult policy equation for Indian policymakers: maintaining Russian oil purchases could preserve access to Russian crude while increasing exposure to potential US trade penalties.
What Could a 100% Tariff Mean for Indian Exports?
If the President eventually uses the tariff authority against India, Indian products entering the US could become significantly more expensive.
That could affect sectors with substantial exposure to the American market, including:
- Textiles and garments
- Gems and jewellery
- Engineering products
- Leather goods
- Marine products
- Chemicals
Higher import costs could encourage American buyers to examine alternative suppliers in other manufacturing and export markets.
The actual economic impact, however, would depend on whether the tariff authority is used, which countries are designated and what exemptions or implementation conditions are applied.
India Could Also Face Higher Oil Costs
There is another possible consequence.
If India reduces Russian crude purchases to limit exposure to US sanctions or tariffs, it would need to increase procurement from other suppliers.
The replacement cost would depend on international crude prices, freight expenses, supply availability and the terms negotiated with alternative producers.
A sustained increase in India's crude import costs could eventually place pressure on domestic fuel prices and the country's broader import bill.
US Legislation Also Targets Russia’s Shadow Fleet
The proposed sanctions regime goes beyond energy purchases.
The legislation includes measures against Russia’s shadow fleet, referring to vessels and networks accused of helping Moscow move oil while circumventing existing sanctions.
It also expands sanctions provisions involving Russian officials, oligarchs, banks and other financial institutions.
The broader objective of the legislation is to increase economic pressure on Russia by targeting both Russian entities and overseas actors involved in its energy trade.
Iran Sanctions Also Extended
The legislation contains a separate Iran-related component.
Also Read: [Trump Claims India Took Advantage of US Trade for Years, Signals New Deal Soon] — TheTripuraPost report
It would extend the Iran Sanctions Act of 1996 by five years, preventing the sanctions authority from expiring at the end of 2026.
This makes the bill broader than a Russia-only sanctions package and gives the US administration additional tools concerning Iranian energy and weapons-related activities.
European Exemptions Included in the Bill
The legislation also provides an exemption mechanism for certain European countries.
Countries whose Russian natural-gas purchases remain below the specified threshold and which are taking meaningful steps to reduce their dependence can qualify for exemption from the proposed tariff provisions.
This distinction means the potential 100% tariff is not an automatic charge on every country purchasing Russian energy. Its application would depend on the statutory criteria and presidential action.
What Happens Next?
The immediate next step is President Trump’s decision on the legislation.
If he signs the measure, the new law would provide the administration with substantially expanded authority to impose tariffs and sanctions targeting Russian energy buyers and sanctions-evasion networks.
For India, the central issue will be how Washington applies that authority and whether New Delhi continues its present level of Russian crude purchases.
The development adds another layer of complexity to India-US trade relations while keeping energy security, crude prices and access to the American export market closely linked.
The Tripura Post will continue tracking developments involving India-US trade, Russian oil, global energy markets and the new US sanctions framework.
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