A new bipartisan bill introduced in the US Senate proposes tariffs of up to 100% on India and four other countries over their continued purchases of Russian oil. The move could add fresh strain to India-United States trade ties. Here’s a complete breakdown of the bill and what it could mean for India.
What Does the Bill Propose?
A bipartisan group of United States Senators has introduced legislation proposing tariffs of up to 100 per cent on imports from India, China and three other countries over their continued purchase of Russian oil, marking Washington’s latest attempt to intensify economic pressure on Moscow over the Ukraine war. The legislation targets the five largest buyers of Russian oil India, China, Slovakia, Hungary and Azerbaijan while exempting 15 European countries that continue to import Russian natural gas.
The bill carries forward the unfinished work of the late Republican Senator Lindsey Graham. It was introduced along with Democratic Senator Richard Blumenthal, who urged Congress to move quickly on the proposal, saying the White House had agreed to the revised framework before Graham’s death. According to Blumenthal, the legislation will impose “full blocking sanctions” on key sectors of the Russian economy including energy, financial and defence industries while also targeting President Vladimir Putin, oligarchs and other influential business figures.
The Exact Tariff Rate Is Still Undecided
One key detail: the precise tariff figure hasn’t been finalized yet. Blumenthal explained that the United States Trade Representative (USTR) would set the tariff rate at a level appropriate to discourage India, China and other major purchasers from buying Russian oil and gas, with reporting and certification requirements to Congress built in if the rate is ever lowered.
From 500% to 100%: How the Bill Evolved
This isn’t an entirely new fight it’s an evolution of an earlier, tougher proposal. An earlier version of the bill had proposed 500% tariffs on purchasers of Russian oil and gas, which has now been scaled down to 100%. The current version modifies the original Sanctioning Russia Act, which had stalled in the Senate over concerns about its extreme provisions and a lack of support from President Donald Trump.
Why India’s Russian Oil Imports Suddenly Surged
Interestingly, India’s rising dependence on Russian crude in recent months isn’t the result of a policy shift it’s tied to a global supply shock. India’s imports of Russian crude oil surged by 34% in June 2026, making it the second largest buyer behind China. This jump was driven by shipping disruptions in the Strait of Hormuz following Iranian retaliation against US Israeli military strikes, which choked off Gulf crude supplies that previously made up 40% of India’s oil imports forcing Indian refiners to turn to Russian crude as the main alternative source.
Reactions From India: Government and Opposition
The bill has already stirred political debate back home. The Congress party demanded a clarification from Commerce Minister Piyush Goyal after the bill was introduced, alleging that India was being “humiliated” by the threat of punitive trade action. Congress leader Pawan Khera pointed out that these were not House Democrats but Republican Senators backed by Trump himself demanding 100 per cent tariffs on India and four other countries for buying Russian oil, calling it an affront to India’s sovereignty.
External Affairs Minister S. Jaishankar has also previously addressed India’s position on this issue. At the Kultaranta Talks in Finland, he said India buys oil based on cost and availability, and that at the time in question, much of the oil available in the market was Russian because European countries were buying up Middle East oil, which had traditionally been India’s main supplier. Jaishankar also highlighted what he called Western hypocrisy on the issue noting that the US itself had initially asked India to buy Russian oil to help stabilize global energy markets, only to later impose tariffs over those very purchases.
Not Everyone in the US Congress Agrees
The bill also faces pushback within the US itself. Democratic Congressman Gregory Meeks described it as less of a sanctions bill and more of a “massive backdoor authority” for President Trump to impose additional tariffs including on European allies arguing that the sanctions in the bill are entirely at Trump’s discretion, and that Trump has repeatedly shown he’d rather waive sanctions on Russia than impose new ones.
What This Means for India
- Direct hit to exports: If the bill becomes law and the tariff rate lands anywhere near 100%, Indian exports to the US textiles, pharmaceuticals, IT services, auto components and more could take a serious hit.
- Not the first tariff threat this year: This is the second India-linked US tariff proposal in recent weeks last month the US had proposed 12.5% tariffs on 54 countries, including India, over allegedly failing to prohibit imports of goods made with forced labour.
- Still a long way from becoming law: It’s worth noting that the legislation must clear both chambers of the US Congress before it can become law, and its prospects of passage in the current form remain uncertain.
- India’s position hasn’t changed: India has consistently maintained that it does not recognise unilateral sanctions not mandated by the United Nations, and that its energy sourcing decisions are based on market conditions and domestic requirements.
What Happens Next?
Right now, this is only a proposed bill not a law. It still needs to pass both the Senate and the House of Representatives, and then get the President’s signature. The Trump administration’s stance on oil-related tariffs has been mixed so far, and India-US trade deal talks are running in parallel so the coming weeks should make the bill’s direction much clearer.
The Indian government hasn’t issued a formal statement on this specific bill yet, but given the opposition’s pressure, a response from the Commerce Ministry could come soon.
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https://www.reuters.com/world/us-russia-sanctions-bill-eases-threat-tariffs-china-india-2026-07-14
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