Washington:
India faces a new tariff threat from the Donald Trump administration in the United States after the House of Representatives passed a broad package of sanctions targeting Russian officials and key pillars of its economy. The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 aims to empower President Trump to impose duties of up to 100 per cent on nations purchasing Russian energy, including India and China.
The legislation, passed by the US Senate last month, received the final green light in the House in a 262-159 vote and now heads to President Donald Trump to be signed into law. The legislation represents the US’ most ambitious effort to support Ukraine since Trump’s return to the White House.
India Among Nations Named In Bill
The bill’s path to the Resolute Desk has been full of obstacles, including significant opposition from some House Democrats who argued that it would give the president too much tariff power.
An amendment introduced by Democratic Congressman Steny Hoyer calls for explicitly naming 10 nations — China, India, the UAE, Turkiye, Singapore, Azerbaijan, Kazakhstan, Hungary, Kyrgyzstan, and Slovakia — to be eligible for tariffs of up to 100 per cent under the bill’s secondary tariff provisions.
However, the amendment does not itself impose a 100 per cent duty on India. Such duties could come New Delhi’s way if the legislation is enacted and President Trump subsequently chooses to exercise his authority.
Defending his amendment, Hoyer told colleagues they can’t control what the president does, but they can stand up and declare where they are on the war. “If we fail to pass this bill, there will be cheers in the Kremlin and tears in Kyiv,” he said.
He added his proposed amendment would “tighten the scope of the legal tariff authority by naming the countries.”
India’s import of Russian oil hit a 11-month high in April this year following the US and Israel’s war with Iran.
What the Bill Proposes
The bill seeks to impose sanctions not only on Russia’s leadership and energy sector but also on the “shadow fleet” of vessels that enable Moscow to evade sanctions on oil deliveries. It also seeks to authorise Trump to impose stiff tariffs on China, India, and other countries to reduce their dependence on Russian oil and gas, as well as additional sanctions on Iran.
“China and India, you better buy your oil and gas somewhere else,” Democratic Senator Richard Blumenthal told reporters after the passage of the bill.
“Russia is getting that oil and gas sold by using the shadow fleet, which means that it’s being bought at less than market rates, and it’s going mostly to countries like China and India,” Democratic Senator Jeanne Shaheen said.
“China is the top user of Russian oil and gas, and we need to send a very strong message, not just to Putin, but to China, and to anybody who is buying Russian oil and gas, that they are going to pay a price for that,” Shaheen said.
Democrats Oppose the Bill
Gregory Meeks, the top Democrat on the House Foreign Affairs Committee, called the bill “deeply flawed.”
“White House lawyers drafted the current text to maximise President Trump’s authority to impose new import taxes on the American people, and to minimise any obligation to actually impose new sanctions on Russia or its enablers,” he said.
Meeks said he would support the legislation if the secondary tariff provisions were removed, but Republicans rejected amendments aimed at narrowing them.
Democratic leader Hakeem Jeffries of New York, speaking in opposition to the bill, said Democrats would continue to support the Ukrainian people until victory is won, “but this bill does not provide a path to secure that.”
In all, 58 Democrats broke with Jeffries and voted for the bill, while 152 voted against it. Among Republicans, 203 voted yes while seven voted against it.
Bill Widens India’s Tariff Exposure
Experts pointed out that proposed tariff escalation could affect India’s growth outlook.
Talking to Fortune India, Aditi Nayar, Chief Economist, ICRA Ltd, said, “Any imposition of higher tariffs by the US, and the associated uncertainty, would cast a downside on Indian growth prospects.”
However, the final provisions affecting India will depend on whether the legislation becomes law and if the president uses the powers it provides. But it adds another layer of uncertainty to bilateral trade relations between New Delhi and Washington.
While India and Russia ties have grown stronger since the start of the war in Ukraine, driven largely by Russian oil exports, the same cannot be said of India-US relations. Last August, Trump imposed an additional 25 per cent tariff on Indian imports of Russian crude, on top of a 25 per cent reciprocal tariff.
However, the additional Russia-related tariff was removed in February 2026, while the reciprocal tariff was reduced to 18 per cent as part of a US-India trade framework that still remains in limbo, with no significant breakthrough.
If the 100 per cent tariffs were levied on New Delhi, this would be the highest duties India would have to face during Trump’s presidency. This would come on top of a 10 per cent tariff that the US currently imposes on imports from India as a penalty for not doing enough to stop the import of goods made using forced labour.
