The US Congress on Wednesday passed legislation giving President Donald Trump sweeping new powers to impose punitive tariffs of up to 100 per cent on major buyers of Russian energy products, including India. The legislation now awaits Trump’s signature.
The US House of Representatives cleared the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 by a vote of 262-159. The Senate had passed the legislation earlier.
The measure authorises tariffs of up to 100 per cent on leading importers of Russian oil and gas, while providing exceptions for countries making efforts to reduce their dependence on Russian energy.
The legislation comes seven months after Washington withdrew a 25 per cent Russia-related levy on Indian goods. The White House removed that tariff with effect from February 7, 2026, citing steps taken by India in relation to Russian oil and broader bilateral cooperation.
Russia accounted for around 30 per cent of India’s crude oil imports in 2025-26 (FY26).
New tariff power comes amid India-US trade talks
The bill gives Trump fresh authority to impose tariffs on India even as New Delhi and Washington remain engaged in negotiations over a bilateral trade agreement.
India and the US are likely to hold bilateral trade discussions on the sidelines of the G20 Trade Ministers’ meeting scheduled for September 30-October 1 in Wisconsin.
So far, New Delhi has maintained that it will proceed with the trade agreement only after Washington ensures a tariff advantage to Indian exporters over competing economies. Commerce and Industry Minister Piyush Goyal has reiterated this position on several occasions.
Experts view the legislation as an attempt by the US to gain leverage in negotiations for the Bilateral Trade Agreement (BTA).
“The bill is a blunt and dangerous attempt to pressurize India to sign BTA on one sided terms. India buys Russian oil to secure affordable energy for 1.4 billion people, not to finance war, and these purchases have helped stabilise global supplies and prices,” Global Trade Research Initiative founder Ajay Srivastava said.
“The tariffs would punish Indian exporters and American consumers, disrupt trade and give the US president excessive power over major partners. Washington should pursue diplomacy and stable energy markets, not threaten a strategic partner for protecting its legitimate economic interests,” Srivastava added.
Indian goods already face 10% Section 301 tariff
Indian goods currently face an additional 10 per cent tariff in the US under Section 301 of the Trade Act of 1974, subject to product exemptions.
The US imposed the 10 per cent Section 301 tariff on India and several other economies in July following investigations into policies related to imports produced with forced labour.
The latest legislation therefore creates the possibility of an additional Russia-linked tariff layer if Trump chooses to invoke the new authority against India.
