- US passes a bill allowing Trump to impose tariffs of up to 100% on countries buying Russian oil.
- India says energy security remains a priority and will continue using diversified sources.
- Russia supplied around 30% of India’s crude imports in FY2026, making the US move significant.
India and the US are once again at odds over Russian oil. The US House has reportedly passed a bill that allows President Donald Trump to impose up to 100% tariffs on countries buying Russian oil. This has raised fresh concerns for India, putting the country’s oil imports under pressure.
US Passes Bill for 100% Tariffs on Russian Oil Imports
Recently, the US House of Representatives passed a bill related to Russian oil and gas. The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 passed the House by a 262-159 vote. With this move, Trump now has the authority to impose tariffs of up to 100% on countries using Russian oil.
This doesn’t mean that Trump automatically imposes a 100% tariff on India. Instead, the bill gives power to Trump to decide whether to use the provision. But what is concerning is that India is one of the major buyers of Russian oil and could be significantly affected by the bill.
India Pushes Back, Defends Its Energy Strategy
In response to the bill, India made it clear that the country’s energy needs remain a priority. The Ministry of External Affairs confirmed that India will continue to buy energy through diversified sources. The country’s key goal is to ensure reliable energy for its 1.4 billion people.
The country has also raised concerns with US officials about the possible consequences of the bill on bilateral ties and the global energy market. The government added that it will take necessary steps to protect its trade and economic interests.
The 100% Tariff Is Not Automatic
It is important to note that the US House bill does not mean that India will immediately face a 100% tariff. Only if Trump chooses to impose the tariff on countries purchasing Russian energy, India would face the consequences. Although the House has passed the bill, it still needs to be signed into law by Trump.
Why Russian Oil Matters to India?
Interestingly, Russian crude oil is an important part of India’s energy supply. In FY2026, Russia supplied around 30% of India’s total crude imports, with purchases worth around $40.8 billion. This means that any possible disruption in the trade could be significant for the country. As the country has focused on keeping energy supplies stable, the government has now confirmed that its crude procurement will continue to be guided by national energy requirements.
What the US Move Could Mean for India
Notably, the US’s legislation could create pressure on India’s energy strategy as well as its trade relationship with America. If Trump eventually uses the provision to impose huge tariffs on India, Indian exports to the US could face higher duties. Also, any changes to Russian oil purchases could affect India’s import costs and energy supply.
The move also comes amid the ongoing trade discussions between the US and India. While the potential impacts of the latest legislation on India’s oil supply remain unclear, the country vows to continue monitoring the situation. The government will also take necessary steps to safeguard its oil trade with Russia.
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India has already raised the issue with US officials. The country warned that the new legislation could impact both India-US relations and the wider energy space. Reportedly, the Ministry of External Affairs had already conveyed the matter to US interlocutors. The MEA stated,
“India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and on the basis of evolving market dynamics…India has also made clear its determination to take all necessary measures to protect its trade and economic interests.”
Now, the country is waiting to see if Trump will sign the legislation into law. If signed into law, it should still be watched how the US president will use the provision and what the impacts will look like.
Related: Trump’s New Tariffs Explained: What They Mean for Markets and Prices
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