US President Donald Trump is expected to sign into law a sweeping Russia sanctions bill that gives him the authority to impose tariffs of up to 100 per cent on goods from major buyers of Russian oil and gas, putting India at the centre of a fresh trade and diplomatic challenge with Washington.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 has cleared both chambers of the US Congress and reached Trump's desk after the House of Representatives approved it by 262 votes to 159 on Wednesday. The Senate had passed the legislation by 86-11 in August. A White House official said Trump plans to sign the bill, which is designed to squeeze Russia's energy revenues and increase economic pressure on Moscow over the Ukraine war.
100% tariff not automatic
The legislation does not automatically slap a 100 per cent tariff on Indian goods once Trump signs it. Instead, it gives the US President the authority to impose tariffs of up to 100 per cent on imports from countries that rank among the largest buyers of Russian crude oil or natural gas.
That distinction is crucial for India. Once the legislation becomes law, the Trump administration would have a congressionally authorised instrument that could be deployed against New Delhi if India continues to remain among Russia's biggest energy customers.
The legislation targets the five largest importers of Russian crude oil or natural gas by volume. It also contains provisions allowing the President to waive sanctions in circumstances where doing so is considered to be in the US national interest.
India's position is particularly significant because it remains one of Russia's largest crude buyers. S&P Global data showed India importing around 1.6 million barrels per day of Russian crude in August, placing it ahead of China during the month.
India warns Washington
New Delhi has reacted cautiously but firmly to the legislation, warning that its implementation could have consequences extending beyond India-US trade.
India has said its energy purchases are determined by the requirements of its 1.4 billion people, affordability and security of supply. New Delhi has consistently defended its purchase of Russian crude on the grounds that securing competitively priced energy is necessary for an economy of India's size.
India has also warned that measures targeting major Russian energy buyers could have implications for India-US relations and the wider global energy market.
The legislation arrives at a sensitive moment for bilateral economic ties, with New Delhi and Washington continuing negotiations on trade while tariff disputes have already created friction between the two countries.
Pressure on Russian oil
The bill is intended to reduce Moscow's ability to finance its war in Ukraine by targeting not only Russia itself but also some of the biggest international purchasers of its energy.
Alongside the tariff provisions, the legislation targets Russia's energy sector, defence-linked entities and the so-called shadow fleet of tankers used to transport Russian oil and circumvent Western restrictions.
Supporters of the legislation in Washington argue that reducing Russia's oil revenues would place additional economic pressure on President Vladimir Putin to end the war in Ukraine.
The measure originally contemplated tariffs as high as 500 per cent before lawmakers scaled the figure down to a maximum of 100 per cent as the legislation moved through Congress.
India faces difficult choice
The new powers could present New Delhi with a difficult economic calculation if Trump chooses to use them.
Russian crude became an important component of India's energy basket after Moscow began offering discounted oil following Western sanctions imposed after the invasion of Ukraine. Indian refiners significantly increased purchases, helping reduce import costs while Russia redirected energy exports away from traditional European markets.
Cutting Russian purchases sharply could force refiners to source greater quantities from other suppliers, potentially affecting costs and energy security. Continuing large-scale purchases, however, could expose Indian exports to additional US tariff pressure if Washington invokes the new legislation.
The United States remains one of India's most important export markets, making any substantial additional tariff potentially consequential for sectors dependent on American demand.
Trump holds the lever
Much will therefore depend not merely on Trump's signature but on how aggressively his administration chooses to exercise the authority provided by Congress.
The law would give the President considerable discretion, including the ability to use the threat of tariffs in negotiations with countries purchasing Russian energy and to grant waivers where US national interests warrant them.
For India, Trump's expected signature will consequently mark the beginning rather than the conclusion of the issue. The immediate question is no longer whether Washington possesses the legislative authority to threaten tariffs over Russian oil purchases, but whether — and to what extent — Trump chooses to use it against New Delhi.