The US Senate has approved a bill that could pave the way for tariffs of up to 100 per cent on countries buying Russian oil, gas and other exports. India is among five countries named by the bill’s sponsors as potential targets, raising the possibility of fresh tariff pressure on New Delhi.
The measure, approved 86-11 on Friday, now moves to the House of Representatives. If passed in the same form, it would go to President Donald Trump for his signature.
Bill leaves tariff rate to USTR
Officially called the Lindsey O Graham Sanctioning Russia and Iran Act 2026, the Bill sets a maximum tariff of 100 per cent but does not automatically impose that rate.
The actual tariff would be decided by the US Trade Representative (USTR). The Bill also allows the president to waive the measures if national interest conditions are certified to Congress. Any such decision would be reassessed every 180 days.
China, India, Slovakia, Hungary and Azerbaijan are the five countries identified by the Bill’s sponsors. The sponsors have argued that tariffs should be high enough to discourage Chinese and Indian purchases of Russian energy.
India faces fresh tariff pressure
The Senate vote comes as India and the US are negotiating a trade deal. New tariffs could give Washington another point of leverage in those talks.
India has previously criticised additional tariffs linked to its Russian oil purchases, arguing that Russian energy is also being bought by several other countries. New Delhi has maintained that its energy purchases are driven by its energy security requirements.
The US had also temporarily allowed some purchases of Russian crude after waiving sanctions during an energy crisis linked to disruptions in West Asia. That waiver has since expired.
Trump could still lower the tariff
The bill gives the US administration considerable flexibility. The USTR could set a rate below the 100 per cent ceiling, while the president could also use the waiver provision.
“Today, President Zelenskyy is watching from Ukraine — and Putin is watching from Moscow,” Senator Richard Blumenthal, a Connecticut Democrat who worked with Graham on the package, said on the Senate floor. “I would like to think Lindsey Graham is watching, too. Today we say to the people of Ukraine: You are not alone. And today we say to Vladimir Putin: You will not conquer Ukraine.”
For India, the final impact will depend on how the bill progresses through the House and how the Trump administration chooses to use its tariff-setting powers.