India faces a fresh trade threat from the United States after the US Senate passed legislation that could allow President Donald Trump to impose tariffs of up to 100% on countries purchasing Russian oil and gas.
The bill, approved by an 86-11 vote, was renamed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 in honour of Republican Senator Lindsey Graham, who championed the legislation before his death on July 11.
The legislation gives the US President discretionary authority to impose tariffs of up to 100% on goods from five major buyers of Russian oil and gas — India, China, Azerbaijan, Hungary and Slovakia. The tariffs would not take effect automatically and would depend on the final legislation and subsequent executive action.
For India, the move could have significant consequences. New Delhi is among the world's biggest buyers of Russian crude, with discounted supplies becoming an important part of India's energy strategy since the Ukraine war began in 2022.
The proposed US measures come after Washington imposed an additional 25% tariff on Indian goods in August 2025 over India's Russian oil purchases, taking total tariffs on some Indian exports to 50%.
Also read: India-South Africa agree to expand bilateral trade: Piyush Goyal
Despite the earlier tariff action, India's imports of Russian crude continued to rise. Russian oil shipments to India increased sharply in 2026, with imports rising 34% in June alone to record levels.
India has maintained that its energy purchases are guided by national interest and energy security. Russian crude has helped Indian refiners secure supplies at competitive prices amid disruptions to global energy markets.
The Senate bill also extends the Iran Sanctions Act of 1996 until 2031 and introduces additional sanctions targeting Russian President Vladimir Putin, oligarchs, senior officials and financial institutions linked to the Kremlin.
Supporters of the legislation argue that tougher economic measures are needed to pressure Moscow over the war in Ukraine. However, some lawmakers have opposed the proposed tariff powers, warning that they could strain relations with countries such as India without necessarily changing their energy policies.
The bill will now move to the US House of Representatives, which is scheduled to consider it after reconvening on August 31. It must clear the House before being sent to Trump for approval.
The final impact on India will depend on whether the legislation becomes law, how its tariff provisions are implemented and whether exemptions or carve-outs are included.
Follow us
