US Bill Threatens Up to 100% Tariffs on Countries Buying Russian Oil, India Could Be Affected

A new bill currently under consideration in the U.S. House of Representatives could grant the President the authority to levy tariffs of up to 100% on nations that continue to buy Russian oil and gas. This measure could strain relations between the U.S. and India, a significant consumer of Russian energy.

The proposed legislation aims to intensify economic pressure on Moscow following its actions in Ukraine. Having already passed the Senate, the bill is now awaiting a final vote in the House.

Highlights

• A US House bill proposes giving the President power to impose tariffs of up to 100% on countries buying Russian energy.
• The legislation targets Russia's leadership, energy, and defense sectors, as well as its "shadow fleet" accused of evading oil sanctions.
• India, a major importer of Russian oil and gas, stands to be significantly affected by these potential tariffs.
• The bill successfully cleared a key procedural hurdle in the House of Representatives with a 214-211 vote.
• If approved by the House, the bill will proceed to the President for his signature to become law.

Details

The "Lindsey O. Graham Sanctioning Russia and Iran Act of 2026" was passed by the Senate last month. After clearing a procedural vote in the House on Tuesday, it is expected to face a final vote on Wednesday. The bill seeks to limit Russia's ability to fund its war efforts in Ukraine.

India has substantially increased its imports of Russian oil since the conflict in Ukraine began, a move that has created tensions in India-U.S. relations. Last August, then-President Donald Trump imposed an additional 25% tariff on Indian imports due to these purchases. Although this specific tariff was removed in February 2026, a landmark bilateral trade agreement between the two nations remains in limbo.

Why it matters

This legislative proposal has the potential to significantly impact global energy markets and international diplomacy. It could lead to substantial economic consequences for major energy consumers like India and broaden the scope of U.S. sanctions against Russia. If enacted, the bill is expected to place further pressure on Russia's energy export revenues.