Trump Signs Bill Allowing Up to 100% Tariffs on Russian Oil Buyers Into Law; India, China to be Affected

Washington DC: US President Donald Trump has signed into law legislation that gives him the authority to impose additional tariffs of up to 100 per cent on countries that continue to purchase Russian oil and gas, including India and China. The move comes as India and the US continue negotiations on a trade agreement.

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which was passed by the US House of Representatives earlier this week, authorises tariffs of up to 100 per cent on goods from countries identified as major purchasers of Russian crude oil or natural gas. India and China are among the countries that could face such tariffs. The law does not automatically impose a 100 per cent tariff on Indian goods; it gives the US president the authority to impose such duties under specified conditions.

India has increased its purchases of Russian crude compared with last year. Russian oil has remained India's largest source of crude imports for the past four years, with refiners benefiting from relatively lower-priced supplies. India's continued dependence on Russian crude has become a key issue in the ongoing trade discussions with Washington.

India's External Affairs Ministry has said that the country remains committed to ensuring its energy security and will continue to source energy from different suppliers in line with evolving market conditions. New Delhi has also warned that the US measure could have implications for India-US ties and its trade and economic interests.

India's Russian crude imports stood at around 2.8 million barrels a day in July before declining to about 2.1 million barrels a day in August. The decline was partly linked to increased purchases of Venezuelan crude after the US tightened control over Venezuela's oil sales.

The new law could have significant implications for India's energy trade and broader commercial relationship with the US.

China has strongly opposed the US move. Beijing said third parties should not interfere in China's trade cooperation with other countries and reiterated its opposition to unilateral US measures and the imposition of US rules on other nations.