India Risks Up to 100% US Tariffs Over Russian Oil After House Clears Bill
India could face additional US tariffs of up to 100% if it continues buying Russian oil after a sweeping sanctions bill cleared Congress and headed to President Donald Trump's desk, potentially opening a new front in US-India trade tensions.
The US House of Representatives approved the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by a 262-159 vote on Wednesday, September 16. The Senate had passed the legislation 86-11 on August 7. The measure now awaits Trump's signature.
The legislation does not itself immediately impose a 100% tariff on Indian goods. Instead, if signed into law, it directs the president to impose additional duties of up to 100% on goods from countries meeting specified criteria tied to purchases of Russian-origin crude oil or natural gas.
That distinction is significant for Indian exporters: the actual impact would depend on whether India falls within the statutory criteria when the measure is implemented, the tariff rate ultimately imposed and whether the administration grants a waiver.
Why India is exposed
The legislation targets a country that knowingly makes new purchases of Russian-origin crude oil or natural gas beginning 30 days after enactment and was among the five largest importers by volume during the preceding 12 months. It also covers the top five countries found to be facilitating Russian oil sanctions evasion.
The measure requires duties on goods from a qualifying country to be increased to a rate of up to 100% ad valorem. Those duties would be **in addition to** other applicable US tariffs, fees or trade measures.
India's large purchases of Russian crude make the provision particularly consequential for New Delhi.
According to an analysis by the New Delhi-based Global Trade Research Initiative, Russia supplied India with $7.27 billion worth of crude in July 2026, accounting for 51.1% of India's $14.21 billion in crude imports that month.
GTRI said the United Arab Emirates supplied 10.8%, Saudi Arabia 9.6%, Venezuela 6.3%, Brazil 5.5%, Oman 5.3% and the United States 2.9%.
The think tank said India imports more than 88% of its crude-oil requirements, making changes to its sourcing strategy economically significant.
Up to 100% — but not automatically 100%
The wording of the legislation is important.
It does not prescribe an automatic flat 100% tariff on India. The statutory ceiling is "up to 100 percent," and the US Trade Representative can subsequently modify the rate within the permitted range when the conditions in the law are met.
The bill also gives the president authority to waive duties or other sanctions when the administration certifies to Congress that a waiver is in the US national interest.
The first tariff action would not necessarily occur immediately upon Trump's signature. Section 113 directs the president to act no later than 30 days after enactment, while the definition governing Russian-energy purchasers looks at new purchases made on or after 30 days following enactment.
The US Trade Representative would subsequently reassess the largest Russian crude and natural-gas importers every 180 days.
GTRI warns of major trade risk
GTRI founder Ajay Srivastava argued that the legislation could give Washington substantial new leverage over New Delhi in negotiations involving Russian oil and bilateral trade.
He urged India not to sacrifice its energy-security strategy solely to secure tariff relief, arguing that Russian crude has helped India diversify supplies and manage its import costs.
That represents GTRI's policy assessment rather than a position stated in the US legislation.
The think tank also argued that India's vulnerability is heightened by its dependence on imported crude and by the scale of Russian supplies in its current energy mix.
The bill's supporters in Washington, by contrast, say its purpose is to deprive Moscow of energy revenue used to finance Russia's war in Ukraine. Senator Jeanne Shaheen, the ranking Democrat on the Senate Foreign Relations Committee, said after the House vote that the measure was intended to increase economic pressure on Russia and strengthen Ukraine's negotiating position.
The legislation also targets Russian banks, officials, energy interests and vessels involved in sanctions evasion. It separately provides for tariffs of up to 500% on goods imported directly from Russia.
US is a crucial market for Indian exporters
Any substantial additional tariff would matter because the United States remains one of India's most important export markets.
India exported $8.4 billion in merchandise to the US in August 2026, up 21.83% from a year earlier, while imports from the US surged 65.78% to $5.97 billion, according to Indian government trade data.
During April-August 2026-27, India's merchandise exports to the US reached about $42.8 billion, up 6.17%, while imports from the US increased 29.6% to about $28 billion.
That means a broad tariff covering "all goods," as contemplated by the Russia sanctions legislation, could have implications well beyond India's energy sector.
The US is an important market for Indian engineering goods, electronics, pharmaceuticals, chemicals, textiles and other manufactured products. India's overall merchandise exports reached $43.81 billion in August, with electronic goods, petroleum products, engineering goods and chemicals among the major growth drivers.
The possible tariff exposure could therefore affect Indian companies selling into the United States as well as US businesses and consumers that rely on Indian imports.
What happens next?
The immediate next step is President Trump's decision on the legislation.
The House's 262-159 vote followed the Senate's 86-11 approval, completing congressional passage. The measure was sent to the White House for presidential action.
If Trump signs it, the administration would then have to implement the legislation's sanctions and tariff provisions and determine which countries meet the statutory conditions.
For India, that makes the next phase as important as congressional passage itself.
The key questions will be whether the Trump administration identifies India as a country subject to the Russian-energy tariff provision, what tariff rate it selects, whether New Delhi changes its Russian crude purchases and whether Washington uses the waiver provisions.
Until those decisions are made, the legislation creates a potentially significant tariff risk for India — but it should not be described as an immediate 100% tariff already imposed on Indian exports.
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