Indian exporters warn that new US tariffs targeting countries buying Russian oil could disrupt shipments and escalate uncertainties in a vital trade partnership, amid fears of escalating tensions and economic strain.
Indian exporters are warning that a new US law authorising tariffs of up to 100% on imports from countries that buy Russian oil and gas could hit shipments to America and inject fresh uncertainty into a trade relationship that has deepened in recent years. Exporters said the immediate damage will depend on the eventual tariff rate, the product list and the timetable for implementation, but they argued that even the threat of steep duties could freeze commercial decisions and raise costs already pushed up by the war in Ukraine and tensions in West Asia.
SC Ralhan, president of the Federation of Indian Export Organisations, said many engineering firms depend heavily on the US market and would struggle to absorb such duties. Sharad Saraf, chairman and managing director of Technocraft Industries, told Deccan Chronicle that the uncertainty itself was damaging, saying companies need clarity before they can plan orders or pricing. Mohit Singla, chairman of the Trade Promotion Council of India, also described the move as a major concern, warning that it could disrupt business ties if it is carried through.
The new legislation, signed on 18 September, would allow President Donald Trump to impose duties on countries that rank among the five largest buyers of Russian crude oil or natural gas over the previous 12 months. GTRI founder Ajay Srivastava said India should not trade energy security for short-term tariff relief, arguing that past US tariff actions show that even trade agreements do not necessarily insulate partners from fresh pressure. His comments reflect a wider fear among exporters that Washington may use tariffs as leverage in broader negotiations.
The broader trade relationship between the two countries remains substantial. India’s main exports to the US include pharmaceuticals, telecom equipment, gems and jewellery, petroleum products and auto components, while imports range from crude oil and coal to aircraft parts and gold. Deccan Chronicle reported that merchandise exports to the US rose 6.17% to $42.8bn in April-August 2026-27, while imports climbed 29.6% to $28bn. Bilateral trade reached $140.76bn in 2025-26, and both sides have previously said they want to lift trade to $500bn by 2030. The United States and India also settled six long-running World Trade Organisation disputes in 2023, underscoring how much has been invested in keeping the relationship on an even keel.
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