India Faces 100% US Tariff Risk As Senate Advances Russia Sanctions Bill

Washington had already imposed an additional 25% tariff on India in August 2025 over its Russian oil purchases, taking the total to 50%.

The US Senate has advanced a Russia sanctions bill that could expose India and four other countries to tariffs of up to 100% over their continued reliance on Russian energy.

Source : PTI

Show Quick Read

Key points generated by AI, verified by newsroom

• US Senate advanced sanctions bill targeting Russian energy buyers.
• India faces up to 100% tariffs for Russian oil reliance.
• Previous 50% US tariffs were imposed on Indian goods.
• New bill re-opens India's vulnerability despite past waivers.

India and four other countries could face tariffs of up to 100% under a sweeping US sanctions bill targeting Russia, after the US Senate voted overwhelmingly on Tuesday to advance the legislation.

The procedural vote passed 86-12 as Ukrainian President Volodymyr Zelensky visited the US Capitol. The legislation, authored by the late Senator Lindsey Graham, seeks to increase economic pressure on Moscow over its invasion of Ukraine by targeting Russian officials and countries that continue to rely heavily on Russian energy.

India, China, Slovakia, Hungary and Azerbaijan are among the countries that could face steep tariffs under the proposed legislation. India is particularly exposed because it has emerged as the second-largest buyer of Russian crude oil after China.

Why India Is In The Crosshairs

The bill, introduced in April 2025, would authorise tariffs of up to 100% on countries that continue buying Russian energy. Graham had earlier said the legislation had received the backing of President Donald Trump, at a time when Washington and New Delhi were already locked in trade tensions.

For India, the issue has become more complicated amid disruptions to global energy supplies. The West Asia conflict has affected shipping through the Strait of Hormuz, while the Iran-US war has disrupted Gulf crude supplies that previously accounted for roughly 40% of India's oil imports.

With those supplies disrupted, Indian refiners have increasingly turned to Russian crude as an alternative source of energy. That dependence could now leave New Delhi vulnerable to the sanctions mechanism being considered by the US Senate.

India Already Faces 50% US Tariffs

The latest legislation comes after Washington had already imposed significant tariff pressure on India over its purchases of Russian energy.

In August 2025, Trump announced an additional 25% tariff on Indian goods, accusing New Delhi of “fueling Putin's war”. The move brought the total US tariff burden on India to 50%, placing it alongside China and Brazil among the countries facing the highest rates.

The tariff decision also strained relations between the two strategic partners, with trade negotiations subsequently coming to a halt.

Russian Oil Waiver Offers Temporary Relief

The situation became more complicated after the outbreak of the US-Iran war in February, which triggered a wider energy crisis and disrupted shipping through the Strait of Hormuz.

Against that backdrop, the US announced a waiver relating to Russian oil, allowing India to resume purchases. Washington maintained that the purchases under the arrangement would not generate profits for Russia.

The new sanctions bill, however, threatens to reopen the question of India's Russian energy purchases and their impact on its trade relationship with Washington. If the proposed tariff mechanism is ultimately enacted, New Delhi could once again face significant economic pressure over its continued reliance on Russian crude.