India faces the prospect of higher U.S. tariffs on its exports after the U.S. House of Representatives passed legislation. It gives President Donald Trump the power to impose tariffs of up to 100% on countries that continue to buy Russian oil and gas.
The legislation, known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, passed the House by 262-159 on Wednesday after clearing the Senate earlier. It now goes to Trump for his signature.
The bill does not itself impose a 100% tariff on India. It would give Trump the authority to impose such tariffs on major purchasers of Russian energy, potentially including India and China. The administration would decide whether and how to exercise that authority.
India’s External Affairs Ministry said on Thursday it was monitoring developments and remained committed to securing energy for its 1.4 billion people through diversified sourcing.
India has also conveyed to Washington the potential implications of the legislation for bilateral relations and international energy markets, the ministry said.
“We (India) remains firmly committed to ensuring energy security for its 1.4 billion people,” the ministry said, adding that New Delhi would take all necessary measures to protect its trade and economic interests.
India has emerged as one of the biggest buyers of Russian crude since Moscow’s invasion of Ukraine in 2022 disrupted global energy flows. Russian oil has provided Indian refiners with a significant source of crude, while discounted supplies have helped reduce the cost of imports.
The potential U.S. action therefore creates a difficult economic calculation for New Delhi. India could seek additional supplies from producers in the Middle East and elsewhere, but replacing Russian crude on a large scale could increase crude, freight and insurance costs.
The impact of any U.S. tariff would also extend beyond India’s oil purchases. Higher tariffs on Indian exports could affect sectors including electronics, pharmaceuticals, machinery, textiles, chemicals and petroleum products.
U.S. Senator Richard Blumenthal, a Democrat who supported the legislation, urged India and China to stop buying Russian energy after the House vote.
“China and India, you better buy your oil and gas somewhere else,” Blumenthal said, according to media reports.
India’s dependence on imported crude makes the issue particularly sensitive. The country imports more than 85% of its crude oil requirements. It leaves refiners exposed to changes in global prices and supply disruptions.
The legislation also targets Russia’s energy and defence sectors and seeks to strengthen measures against vessels involved in evading sanctions. The bill’s passage marks a significant expansion of the tools available to the Trump administration to pressure countries trading with Russia.
For India, the immediate question is whether Washington will actually impose tariffs, and at what level, or use the new authority as leverage in broader trade negotiations.
New Delhi has said it will continue to assess its energy purchases based on market conditions while seeking to protect both energy security and its economic interests.
