Archive · 17 Sep 2026
US Russia Sanctions Bill Raises India Tariff Risk
The US Congress passed a bill aimed at putting economic pressure on Russia.
The bill could let the US president place tariffs as high as 100% on goods from certain countries that buy Russian oil or gas.
India and China may be affected because they buy Russian crude oil.
However, the bill does not set an India-specific tariff or officially name India as a target in the supplied reports.
The US president still needs to sign the bill.
India said it is watching what happens next.
India also said it needs reliable energy for its 1.4 billion people.
Officials said India may take steps to protect its trade and economic interests.
Experts said the real effect on Indian exports cannot be known until the US provides more details.
The US House passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by 262-159.
The bill would authorize tariffs of up to 100% on goods from major buyers of Russian oil and gas.
GTRI said India and China could be affected because they are major buyers of Russian crude.
India said it is monitoring developments and will consider measures to protect its trade and economic interests.
The impact on Indian exports remains uncertain until the US sets tariff rates, product coverage and an implementation schedule.
- Who
- The United States, President Donald Trump, India, China, Russia and other major buyers or facilitators of Russian energy are involved.
- What
- The US Congress passed legislation authorizing possible sanctions and tariffs of up to 100% on goods from certain countries that buy Russian oil or gas.
- When
- The House passed the bill on Wednesday, while the Senate had approved it earlier; the supplied reports give differing dates for the Senate action.
- Where
- The legislation passed through the US Congress and could affect goods exported from India and other countries to the United States.
- Why
- The measure seeks to reduce financial support for Russia and pressure countries to reduce their dependence on Russian oil and gas.
US Sanctions Strategy
India's Response
Purpose of the legislation
US Sanctions Strategy
US lawmakers presented the measure as a way to reduce the financial resources supporting Russia's war against Ukraine and pressure countries buying Russian energy.
India's Response
India said the measure could affect both bilateral relations and international energy markets, and emphasized its need to maintain energy security.
Purchases of Russian energy
US Sanctions Strategy
The bill could authorize tariffs on countries among the five largest importers of Russian-origin crude oil or natural gas that continue making covered purchases after enactment.
India's Response
India said it will continue pursuing energy security through diversified sourcing and decisions based on evolving market conditions.
Trade consequences
US Sanctions Strategy
The legislation would give the president authority to impose additional tariffs of up to 100% on covered foreign goods, with possible reviews adding countries.
India's Response
India said it is monitoring developments and is prepared to take necessary measures to protect its trade and economic interests; GTRI said the practical impact remains unclear.
- Bill
- Lindsey O. Graham Sanctioning Russia and Iran Act of 2026
- House vote
- 262-159
- Senate vote
- 86-11, according to the Ministry of External Affairs report
- Potential tariff
- Up to 100% on goods from countries covered by the Russian oil and gas purchase provisions
- Potentially affected countries
- India, China and other major Russian energy importers or sanctions-evasion facilitators
- Other provision
- The House Ways and Means Committee said tariffs on Russian goods could reach 500%
- India's position
- India said it is committed to energy security through diversified sourcing and will protect its trade and economic interests
- Uncertainty
- The reports say the US has not yet announced tariff rates, product coverage, implementation timing or an India-specific designation
