The recent bill introduced and passed in the US House of Representatives regarding sanctions on Russia has put India-US trade under further strain. This bill will allow the President of the USA, Donald Trump, to levy tariffs of up to 100% on countries that buy Russian energy products like oil and gas. Both India and China are among the major buyers of Russian energy products.
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Russia Sanctions Bill Passes in the U.S. House
The U.S. House passed the Lindsey O. Graham Sanctions Russia and Iran Act of 2026 by a vote of 262-159 on September 16. This act imposes sanctions on the energy sector, financial sector, and officials and also grants the U.S. President further powers to impose tariffs on countries that continue to buy Russian energy products. This act was already passed in the U.S. Senate and is pending approval by the president. The tariff power given to the president can go up to 100%.
Why the focus on India?
India has been one of the major buyers of Russian oil in the past years. Hence, the nation has become an integral part of the discussion about the proposed law, with the new tariff provisions potentially increasing the costs of exports from India to the U.S. It should be noted that passing the bill does not mean the automatic imposition of a 100 percent tariff on India, since it provides the U.S. president with the power to impose such a tariff.
How it may impact India–U.S. trade?
The new development introduces another dimension of uncertainty in the relations between the countries, taking into account the ongoing energy imports from Russia that are an important aspect of the Indian import policy. The introduction of the high tariff may affect Indian exporters.