Indian exports could face steep new tariffs after the US Senate passed legislation targeting major buyers of Russian oil, including India and China, according to the Global Trade Research Initiative.
The bipartisan Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 cleared the Senate on August 7 in an 86-11 vote and now moves to the House of Representatives.
GTRI said the bill hands President Donald Trump the authority to impose tariffs as high as 100% on goods from the five countries that import the most Russian oil and gas, a list that currently includes China, India, Slovakia, Hungary and Azerbaijan.
India Faces Bigger Risk Than China, GTRI Says
GTRI founder Ajay Srivastava said that while China buys more Russian crude in absolute terms than India, New Delhi could still face heavier pressure from Washington. He pointed to precedent: the US had already slapped an additional 25% Russia-linked tariff on Indian goods in July 2025, later lifting it in February 2026, while sparing China from a similar measure.
Russian oil made up 30.3% of India's total crude imports in FY26, worth $40.8 billion out of a total import bill of $134.7 billion. Srivastava said that discount has helped keep import costs down, strengthened energy security and supported inflation control, and that abandoning it under external pressure would carry a real economic cost.
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GTRI Says India Already Buys More From The US
According to the report, Srivastava also pushed back against the idea that India is sidelining American energy, noting that India's crude purchases from the US climbed from $6.6 billion to $9.1 billion in FY26, with total American energy imports reaching $12.5 billion, including LNG, LPG and petroleum coke.
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Tariff Isn't Automatic, GTRI Clarifies
GTRI clarified the bill does not automatically trigger a 100% tariff on India. Under Section 113, the US president would need to specifically impose the additional tariff on countries that remain among the top five buyers of Russian crude or gas 30 days after the law takes effect.
Any such tariff would stack on top of existing US duties, including those under Sections 301 and 232, along with anti-dumping and countervailing duties already in place.
(With PTI inputs)
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