India stares at potential tariffs as US House prepares to vote on Russia sanctions bill

The US House of Representatives is set to vote on the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 on Wednesday which, if passed and signed into law by US President Donald Trump, could give him the authority to impose tariffs of up to 100 per cent on major buyers of Russian energy.

India is potentially exposed as it is the second largest buyer of Russian oil. India’s response would also depend on how Trump executes the law, once formulated, as it allows him to decide if and when to slap tariffs of up to 100 per cent on the five top importers of Russian oil and gas (which would include both China and India), a source tracking the matter said.

Trump can also waive the tariffs if he so chooses, by claiming it helps national interest. New Delhi has already signalled no shift in its energy-sourcing strategy despite the looming tariff threat. Responding to a question on the Lindsey Graham bill at Tuesday’s media briefing, MEA spokesperson Randhir Jaiswal said New Delhi’s energy sourcing decisions “are based on our national interest”, reiterating that this calculus remains unchanged.

Russia supplied 30.3 per cent of India’s crude imports in FY2026 — $40.8 billion out of total crude imports of $134.7 billion. In July 2026, Moscow accounted for more than half of India’s imported oil. On September 14, the Rules Committee voted 7-3 to advance the bill.

The Rules Committee rejected two Democratic amendments that sought to identify the countries that could face the tariffs and remove the broad secondary-tariff provision altogether. The first amendment, moved by Congressman Steny Hoyer, would have explicitly named 10 countries — including India, China, Türkiye, the UAE and Singapore — as eligible for tariffs up to 100 per cent for buying Russian crude or gas, or aiding sanctions evasion.

It was defeated 3–7. However, this offers India no relief as a second, more significant, amendment from Congressman Gregory Meeks, seeking to strike the President’s broad secondary-tariff authority, was also defeated 3–7.

As a result, if the bill becomes law, the President would retain the power to impose tariffs. The Senate-passed bill names no country; tariffs are triggered based on a country ranking among the five largest importers of Russian oil/gas by volume.