India has said it will take necessary steps to protect its trade and economic interests after the US House of Representatives passed a Bill that could allow tariffs of up to 100 per cent on countries buying Russian oil and gas.
The Lindsey O Graham Sanctioning Russia and Iran Act of 2026 was passed by the House in a 262-159 vote on Wednesday. The legislation gives the US administration the power to impose steep tariffs on major buyers of Russian energy, putting India and China among the countries potentially affected.
MEA flags trade and energy concerns
Reacting to the development, the Ministry of External Affairs said India was closely monitoring what happens next and reiterated its focus on energy security.
“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests,” the ministry said. “Government will work closely with Indian trade and industry bodies to deal with the implications of these developments.”
The MEA did not specify what measures India could take. It said the government would assess the implications of the US legislation while working with industry and trade bodies.
India also stressed that its energy sourcing would continue to be guided by diversification and market conditions.
“This issue has been discussed at high levels in recent months with various US interlocutors. Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side,” it said.
Russian crude remains important for India
The issue is significant for India because of its dependence on Russian crude. According to data cited by the Global Trade Research Initiative, Russia accounted for 51.1 per cent of India's crude imports in July 2026, making it the country's largest supplier that month.
At the same time, India has been diversifying its energy basket, with purchases from countries including the US and Venezuela also increasing in recent months.
GTRI chief Ajay Srivastava said India could face additional US tariffs of up to 100 per cent because of its Russian oil purchases.
“Washington may use the tariff threat to pressure India to reduce Russian oil purchases and accept a deeply unequal trade agreement,” he said.
Srivastava added that India should continue buying Russian crude while it remains commercially competitive.
What happens next
The Senate had already approved the sanctions Bill on August 7. Following its passage in the House, the legislation moves to the next stage for consideration by President Donald Trump.
The legislation does not automatically impose a 100 per cent tariff on Indian goods. Instead, it gives the US administration the authority to impose such tariffs, meaning the eventual impact will depend on how Washington chooses to use those powers.