Trump Signed the US Bill to Impose Up to 100% Tariff on India & Other Russian Oil Buyers

The US Congress passed the Lindsey O. Graham Sanctioning Russia and Iran Act, 2026. The law, signed by President Donald Trump on 18 September 2026, gives the US President the power to impose tariffs of up to 100% on goods imported from major buyers of Russian oil and gas. It does not automatically impose a 100% tariff; the actual rate, products covered and implementation will depend on subsequent US action.

Five major Russian crude buyers identified in the legislative discussion are China, India, Slovakia, Hungary and Azerbaijan.

Impact on India :

1. Export losses -

If high tariffs are imposed on Indian goods entering the US, Indian exporters could become less competitive because their products would become more expensive in the American market. Textiles, apparel and other price-sensitive sectors could face particular pressure. However, the exact export loss cannot yet be calculated because the US has not finalised the tariff rate, product coverage or implementation schedule.

2. Energy-security dilemma -

Russian crude has helped India diversify its oil supplies and manage its import costs. A sharp reduction in Russian purchases could force India to source more crude from other suppliers, potentially increasing costs.

3. India-US trade negotiations -

India has warned that such measures could affect bilateral relations and ongoing trade negotiations. Thus, tariffs can operate not only as a trade measure but also as a negotiating tool.

Tariff as a Pressure Tactic / Weaponisation of Trade:

The issue highlights the growing use of tariffs as an instrument of economic pressure. Instead of directly restricting India’s purchase of Russian oil, the US can threaten access to the US market by imposing higher tariffs on Indian exports. This creates a strategic choice for India between energy security, trade interests and foreign-policy autonomy.