Guwahati: India could face a new tariff threat from the United States after the US House of Representatives approved legislation that would expand the powers of President Donald Trump to impose duties on countries purchasing Russian energy.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 seeks to authorise tariffs of up to 100 per cent on nations importing Russian energy, including India and China. The legislation, which was passed by the US Senate last month, cleared the House by a 262-159 vote and now awaits presidential action.
An amendment introduced by Democratic Congressman Steny Hoyer specifically lists 10 countries-including India, China, the UAE, Turkiye, Singapore, Azerbaijan, Kazakhstan, Hungary, Kyrgyzstan and Slovakia as potential targets under the bill’s secondary tariff provisions.
However, the legislation does not automatically impose a 100 per cent tariff on India. Such duties could be applied only if the bill becomes law and President Trump decides to use the authority provided under it.
The proposed legislation has faced opposition from some House Democrats, who argued that it could give the president broad powers to impose tariffs. Hoyer defended his amendment by saying that explicitly identifying the countries would narrow the scope of the proposed tariff authority.
The legislation proposes sanctions against Russian leaders and the country’s energy sector, along with measures targeting the so-called โshadow fleetโ of vessels used to facilitate Russian oil shipments and evade sanctions.
It would also provide the US president with authority to impose higher tariffs on countries such as India and China in an effort to discourage their dependence on Russian oil and gas.
India’s purchases of Russian crude have remained a key element of its energy relationship with Moscow. According to the source report, Indian imports of Russian oil reached an 11-month high in April 2026, following the US-Israel conflict with Iran.
Possible Impact on India-US Trade
Economists have warned that any further increase in US tariffs could affect India’s economic growth prospects. Aditi Nayar, Chief Economist at ICRA, told Fortune India that higher US tariffs and the resulting uncertainty could weigh on Indian growth.
The ultimate impact on India will depend on whether the legislation is enacted and whether President Trump exercises the powers it would provide. If implemented, however, the measure could add another layer of uncertainty to India-US trade relations.
India’s ties with Russia have strengthened since the beginning of the Ukraine war, particularly because of increased Russian oil supplies. At the same time, trade relations between India and the US have faced tariff-related challenges.
The source report notes that the US had previously imposed an additional 25 per cent tariff on Indian imports linked to Russian crude, alongside a 25 per cent reciprocal tariff. The Russia-related additional tariff was subsequently removed in February 2026, while the reciprocal tariff was reduced to 18 per cent under a US-India trade framework that had not yet produced a major breakthrough.
If a 100 per cent tariff were ultimately imposed on Indian goods under the proposed legislation, it would represent the highest US tariff burden faced by India during Trump’s presidency, according to the source report.
