The US is set to sign a sanctions law imposing up to 100% tariffs on countries purchasing Russian energy, a move that could impact India’s significant dependence on Russian fossil fuels and strain bilateral trade relations.
US President Donald Trump is expected to sign a sweeping sanctions bill that could give Washington the power to levy tariffs of up to 100% on countries that keep buying Russian energy, putting India squarely in the frame. The measure, known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, was approved by the US House of Representatives and is now awaiting presidential action, according to a White House official quoted by PTI.
The legislation is aimed at Russia’s leadership, energy sector and defence-related networks, but its reach extends beyond Moscow. It also authorises the president to impose duties of up to 100% on goods from countries that rank among the five biggest importers of Russian crude or gas and continue making new purchases after the law takes effect. It includes carve-outs for food, medicine and humanitarian trade, and gives the White House discretion to waive sanctions in some cases.
For India, the threat lands at a sensitive moment. New Delhi remains heavily reliant on imported crude, and Centre for Research on Energy and Clean Air said India was the second-largest buyer of Russian fossil fuels in June 2026, taking in €5.5bn of hydrocarbons. Global Trade Research Initiative has argued that Washington may be using the tariff threat as leverage in the broader trade talks, with India and the US still working towards a final deal.
Indian officials have responded firmly. The Ministry of External Affairs said New Delhi had made clear its determination to take all necessary measures to protect its trade and economic interests, and warned that the move could affect both bilateral ties and the wider energy market. Trade analysts say the eventual impact on Indian exports will depend on what tariff rate Washington sets, which products are covered and when any duties would begin.
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