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Home»Explore by countries»India»India faces new 100% tariff threat as US Senate targets Russian oil buyers
India

India faces new 100% tariff threat as US Senate targets Russian oil buyers

By IslaAugust 8, 20264 Mins Read
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The US Senate has approved a bill that could pave the way for tariffs of up to 100% on countries that continue buying Russian oil, gas and other exports, adding a new layer of pressure on India as Washington and New Delhi work to finalize a trade deal.

The measure passed 86-11 on Friday. India is among five countries specifically named by the bill’s sponsors as potential targets, along with China, Slovakia, Hungary and Azerbaijan. Notably, the legislation does not similarly target US allies in Europe that continue to purchase Russian energy.

Known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, the bill sets a maximum tariff rate of 100%, but does not automatically impose that rate. Instead, the US Trade Representative would determine the actual tariff. The legislation also gives the president the authority to waive the measures, provided the administration certifies the decision to Congress. The waiver would be subject to review every 180 days.

The bill’s sponsors have argued that tariffs should be high enough to discourage major buyers, particularly China and India, from continuing to purchase Russian energy. However, the legislation gives the administration considerable flexibility over how aggressively to use the measure.

READ: 25 states sue Trump administration over new tariffs (August 4, 2026)

India has previously objected to additional tariffs linked to its Russian oil purchases. New Delhi has argued that singling out India is unfair because several other countries continue to absorb Russian energy exports. Indian officials have also maintained that purchases from Russia are driven by the country’s energy security requirements.

The Senate vote now sends the bill to the House of Representatives. Republicans control the House, and approval in the same form would clear the final congressional hurdle before the legislation can reach President Donald Trump.

Trump has indicated support for the measure, while his administration was involved in shaping the version that has now cleared the Senate.

Speaking on the Senate floor, Connecticut Democrat Sen. Richard Blumenthal, who worked with Sen. Lindsey Graham on the legislation, framed the vote as a message to Moscow and support for Ukraine.

“Today, President Zelenskyy is watching from Ukraine, and Putin is watching from Moscow,” Blumenthal stated. “I would like to think Lindsey Graham is watching, too. Today we say to the people of Ukraine: You are not alone. And today we say to Vladimir Putin: You will not conquer Ukraine.”

For India, the Senate vote comes at a particularly sensitive moment. Washington and New Delhi are still negotiating a trade agreement, and the proposed tariff measure could give the Trump administration another tool in those talks.

The move comes alongside other US trade actions involving India, including a Section 301 forced-labor tariff imposed last month and an ongoing investigation into excess capacity. Together, the measures could add further pressure to negotiations between the two countries.

At the same time, the US has previously allowed some purchases of Russian crude after temporarily easing sanctions amid an energy crisis linked to tensions in West Asia and the near-closure of the Strait of Hormuz. That waiver has since expired.

The bill’s structure leaves room for both Washington and New Delhi to navigate the issue. The USTR’s authority to determine the tariff means the final rate could remain well below the 100% ceiling. The president could also seek a waiver based on national interest grounds. The required 180-day reassessment provides another opportunity for the administration to change course.

For Indian negotiators, the broader trade talks remain focused on securing better terms compared with competing economies such as Bangladesh and Indonesia. The prospect of additional tariffs tied to Russian oil purchases could now become another factor in those negotiations.



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