&imwidth=800&imheight=600&format=webp&quality=medium "Trump signs Russia sanctions law: India faces fresh 100% tariff threat over Russian oil")
US President Donald Trump on Friday (Sep 18) signed into law a sweeping Russia sanctions package that gives Washington new authority to impose tariffs of up to 100 per cent on major buyers of Russian oil and gas, putting India among the countries that could face fresh trade pressure.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was signed by Trump shortly after it cleared both chambers of Congress. The House passed the measure 262-159 on Wednesday (Sep 16), following an 86-11 vote in the Senate in August. The White House said the law expands sanctions, tariffs and other restrictions on Russia while extending existing sanctions on Iran.
Why it matters for India
For India, the bill brings a threat of tariffs. A key provision of the bill gives Trump the authority to impose tariffs of up to 100 per cent on imports from countries that meet specified criteria linked to purchases of Russian crude oil or natural gas and sanctions evasion.
The law does not automatically impose a 100 per cent tariff on Indian goods. Instead, it creates a statutory route for the Trump administration to impose such duties on countries among the five largest importers of Russian crude oil or natural gas, subject to the law's conditions.
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India says energy security remains priority
India had previously reacted to the passage of the bill in the Senate, before Trump signed it. New Delhi reaffirmed that its energy policy would continue to be guided by the needs of its population and changing market conditions.
“The Government of India has noted the passage of the Sanctioning Russia and Iran Act in the US Congress. We are monitoring further developments on this matter,” the Ministry of External Affairs said on Thursday.
“As stated on several earlier occasions, India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and on the basis of evolving market dynamics,” the ministry added.
New Delhi also said it had discussed the issue with senior US interlocutors in recent months and had clearly outlined the possible implications for both bilateral ties and the international energy market.
“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests,” the MEA said, adding that the government would work with Indian trade and industry bodies to deal with the consequences.
What the new US law means for India
India is one of the world's major buyers of Russian crude. Reuters reported on Friday that Russian oil accounted for more than 40 per cent of India's overall oil supplies and that Indian refiners had already secured September and October supplies that include Russian crude.
Also read | Trump gets new power to hit India, China with up to 100% tariffs as US Senate clears Russia sanctions bill
The new law gives Trump considerable discretion over whether and how to use the tariff authority. It also contains waiver provisions under specified conditions, meaning the signing of the legislation does not by itself establish a new tariff rate on Indian imports.
The measure simultaneously targets Russian officials, financial institutions, defence networks and vessels associated with Moscow's so-called shadow fleet, which is used to transport Russian energy while circumventing Western restrictions. It also extends the Iran Sanctions Act for five years.
Washington's pressure on Russian oil buyers
The legislation is part of the US effort to restrict revenue flowing to Moscow from its energy exports and increase economic pressure over the war in Ukraine.
India's continued Russian oil purchases have already been a point of friction with Washington. The White House had previously imposed an additional 25 per cent tariff on Indian imports in 2025 over Russian oil purchases, before removing that additional duty in February 2026 after saying India had committed to stop purchasing Russian oil.
Reuters reported that Indian purchases of Russian crude subsequently increased again, particularly following disruptions to Middle Eastern energy supplies.
