WASHINGTON: The US Senate has approved a bill that could allow President Donald Trump to impose tariffs of up to 100% on goods from countries that continue to buy Russian oil and gas, potentially increasing trade pressure on India, according to media reports.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 passed the Senate by an 86-11 vote. The bipartisan legislation seeks to increase economic pressure on Russia and Iran and target countries that maintain significant energy trade with Moscow.
US-India Trade Faces Fresh Pressure
India and China are among the largest buyers of Russian crude. If the bill becomes law and the tariff powers are used, Indian exports to the US could face significantly higher costs.
However, the proposed 100% tariff is not yet in effect. The bill must first be approved by the US House of Representatives before it can be sent to Trump for his signature.
India’s purchases of Russian crude have increased since the Russia-Ukraine war began in 2022. Discounted Russian oil has become an important source for Indian refiners, helping secure energy supplies and manage costs.
New Delhi has maintained that its energy purchases are based on national interest, energy security and the need to ensure affordable supplies.
A broad 100% US tariff could affect Indian export sectors including engineering goods, pharmaceuticals, chemicals, textiles and automobile components. US importers could seek alternative suppliers, while Indian exporters could face weaker demand and tighter margins.
The bill also proposes additional sanctions on Russian officials, financial institutions, energy projects and oil tankers accused of helping Moscow bypass existing restrictions.
The legislation also includes measures targeting Iran. The next major step will be consideration by the US House, leaving the final outcome uncertain.
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