Trump gets power to impose 100% tariffs on India
The US Senate‘s approval of a bill on Russia sanctions could expose Indian exports to additional tariffs of up to 100 percent if India continues buying Russian crude oil, think tank GTRI said on Saturday. The US Senate voted overwhelmingly to approve a bill to punish Russia and key buyers of its petroleum products, such as China and India, claiming that such trade helps fuel the Ukraine war.
This bill will allow US President Donald Trump to impose 100 percent tariffs on goods from countries that are the top five importers of Russian oil and gas.
The Global Trade Research Initiative (GTRI) said that India, being the second-largest buyer of Russian crude, is exposed to high tariffs.
Russia supplied 30.3 percent of India’s crude imports in FY2026, worth USD 40.8 billion, helping reduce costs and contain inflation.
“The US Senate has overwhelmingly approved legislation that could expose Indian exports to additional tariffs of up to 100 percent if India continues buying Russian crude oil,” it said.
The Senate passed the bipartisan Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on August 7 by an 86-11 vote. The bill now returns to the House of Representatives.
GTRI Founder Ajay Srivastava said China buys more Russian crude than India, but India may face greater US pressure.
The bill gives President Trump wide discretion to set country-specific tariffs.
Washington has previously penalised India while sparing China. In July 2025, it imposed an additional 25 percent Russia-related tariff on Indian goods, withdrawing it only in February 2026.
“The stakes are high. Russia supplied 30.3 percent of India’s crude imports in FY2026 — USD 40.8 billion out of a total USD 134.7 billion. Discounted Russian oil has lowered India’s import bill, strengthened energy security and helped contain inflation. Giving it up under pressure would impose real costs on the Indian economy,” he said.
India is also buying substantially more energy from the US.
American crude imports rose from USD 6.6 billion to USD 9.1 billion in FY2026, while total US energy purchases reached USD 12.5 billion. This included LNG worth USD 1.4 billion, LPG worth USD 896 million, and petroleum coke worth USD 861 million.
Washington, therefore, cannot credibly claim that India is shutting out American energy, he added.
“The larger concern is America’s growing use of trade restrictions to enforce foreign-policy goals. Reciprocal tariffs, Section 301 investigations, forced-labour measures, sectoral duties and now Russia-related sanctions have turned tariffs into instruments of strategic pressure,” he said.
He added that India shouldn’t allow tariff threats to determine its energy policy.
“As long as Russian crude remains commercially attractive, India should continue buying it. Differences with Washington must be managed through firm negotiation — not extending unilateral concessions that raise India’s energy costs and weaken its strategic autonomy,” Srivastava said.
Explaining more about the bill, the GTRI said the bill doesn’t automatically impose a 100 percent tariff on India.
Section 113 directs the US president to impose additional tariffs of up to 100 percent on goods from countries that continue buying Russian crude oil or natural gas 30 days after the law takes effect and rank among the five largest buyers.
The bill’s sponsors have identified China, India, Slovakia, Hungary and Azerbaijan as the five largest buyers of Russian crude.
These tariffs would be added to existing US duties, including tariffs imposed under Sections 301 and 232, as well as anti-dumping and countervailing duties, he said.
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