US House Passes Russia Bill, India Faces 100 Percent Tariff Risk

India has raised concerns over a US sanctions bill that could allow tariffs of up to 100 percent on major buyers of Russian energy, saying the measure could affect India-US ties as well as the global energy market.

The US House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by 262-159, clearing the measure for consideration by President Donald Trump. The US Senate had earlier approved the legislation by an 86-11 vote on August 7.

India’s Ministry of External Affairs said that New Delhi had discussed the proposed legislation with US interlocutors at senior levels in recent months and had clearly conveyed its concerns over its possible impact on both bilateral relations and international energy markets.

The ministry said that India would take all necessary steps to safeguard its trade and economic interests and would work with domestic trade and industry bodies to address any consequences arising from the US move. It also reiterated that ensuring energy security for the country’s 1.4 billion people remained a key priority.

Under the legislation, the US president would have the authority to impose tariffs of up to 100 percent on goods from the five largest purchasers of Russian crude oil or natural gas. Based on current import volumes, India and China are among the countries that could fall within the scope of the provision. The legislation does not automatically impose the 100 percent tariff, but creates a statutory mechanism for the US administration to take such action.

The legislation uses a rolling 12-month assessment to determine the five largest buyers of Russian crude and gas, with the list to be reviewed every 180 days. The president would have discretion over the tariff rate, subject to the maximum ceiling provided under the bill.

The measure also contains provisions concerning countries importing Russian natural gas. Countries where Russian gas accounts for less than 15 percent of Russia’s total gas exports and which are taking significant steps to reduce such purchases can qualify for an exemption under the legislation. A separate provision provides for tariffs of up to 500 percent on certain goods imported directly from Russia.

The legislation also gives the US president the ability to waive tariffs for a country if he certifies to Congress that doing so is in the national interest of the United States. Permanent removal of the tariffs would require certification that the country has stopped purchasing Russian energy and provided assurances that such purchases would not resume.

Russia continues to be India's largest source of crude oil. According to figures cited by the Global Trade Research Initiative, Russian crude accounted for 51.1 percent of India's crude imports in July, exceeding imports from the UAE, Saudi Arabia, Venezuela, Brazil, Oman and the US combined.

India has simultaneously increased purchases from other suppliers, including the US and Venezuela, as part of efforts to diversify its energy sources. The government has maintained that its decisions on energy procurement are guided by national interests and changing market conditions.

The latest US legislation comes against the backdrop of continuing tensions over India's purchases of Russian crude. India had reduced Russian oil purchases under US pressure during much of 2025, but subsequently increased imports amid disruptions in global energy supplies linked to the conflict in West Asia.

The potential impact of the legislation on India will depend on how the Trump administration exercises the powers provided by the bill, including the tariff rate and the countries ultimately identified under the legislation. The measure therefore creates a new source of uncertainty for India's energy trade as well as its broader commercial relationship with the US.

India and the US are also engaged in negotiations on a bilateral trade agreement. The two countries had reached an understanding earlier on reducing tariffs on Indian exports, but a final agreement has yet to be signed.