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US  gives Trump authority to impose up to 100% tariffs on India over Russian oil purchases

US gives Trump authority to impose up to 100% tariffs on India over Russian oil purchases

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By The South Asia Times

 

WASHINGTON - The United States has cleared legislation giving President Donald Trump the authority to impose tariffs of up to 100% on countries that continue purchasing Russian oil and gas, potentially exposing major buyers including India and China to sharply higher trade barriers.

 

The US House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by a vote of 262-159 on Wednesday. The measure had already passed the Senate and now goes to Trump for his signature.

 

The legislation does not automatically impose a 100% tariff on India. Instead, it gives Trump the authority to impose additional tariffs of up to 100% on major purchasers of Russian energy under conditions set out in the bill. India and China are among the countries that could potentially be affected.

 

After the House vote, Democratic Senator Richard Blumenthal issued a direct warning to India and China over their continued purchases of Russian energy.

 

“To China and India: You better clean up your act. Buy your oil and gas somewhere else. Appeasement is not a strategy,” Blumenthal said, according to reports.

 

The legislation is intended to increase economic pressure on Moscow by targeting Russia's energy revenues and entities involved in circumventing existing sanctions. It also includes measures targeting Russia's leadership, financial sector and so-called “shadow fleet” of vessels used to transport oil.

 

- India warns of impact on bilateral ties

 

India's government has responded cautiously to the legislation, saying it has already communicated its concerns to Washington.

 

New Delhi said it remains committed to ensuring energy security for its population and will continue sourcing supplies from diverse sellers according to market conditions. India also said it would take measures to protect its trade and economic interests.

 

India has become a major purchaser of Russian crude since Moscow's full-scale attack on Ukraine in 2022, with Indian refiners citing energy security and market considerations for continuing those purchases.

 

Indian refiners have also raised concerns about the potential economic impact of new US tariffs, particularly as global energy markets face additional disruption from conflicts in the Middle East.

 

- Potential pressure on India-US trade talks

 

The new tariff authority could add another complication to ongoing India-US trade negotiations.

 

The legislation comes as Washington continues pressing major Russian energy buyers to reduce their dependence on Moscow. The measure also contains provisions concerning Iran and Russia's energy sector.

 

For India, the issue creates a difficult balance between maintaining access to Russian crude and protecting its trade relationship with the United States. New Delhi has said its energy purchasing decisions are driven by energy security, affordability and market conditions.

 

The legislation now awaits Trump's signature. Any tariff on Indian goods would therefore depend on a subsequent decision by the US president rather than taking effect automatically under the bill.

 

- India's opposition attacks Modi government

 

India's main opposition Congress party criticized the development in a statement on X, accusing Prime Minister Narendra Modi's government of failing to adequately respond to pressure from Washington.

 

The party said Blumenthal's warning showed the seriousness of the US pressure and alleged that Modi had made excessive concessions to the United States.

 

"Modi has completely surrendered to America. Whatever America says, Modi acts like an agent and does exactly that. Modi is engaged in pleasing America in every way. America has some secret related to Modi, because of which Modi has completely compromised," it said.

 

The legislation marks a significant new step in Washington's effort to pressure countries purchasing Russian energy, while leaving the decision on whether and how to apply the additional tariffs to the Trump administration.

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