India is once again facing uncertainty over its access to the US market after the US Congress approved legislation targeting countries that continue to purchase Russian energy.
The House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on September 16 by a vote of 262-159. The bill had already passed the Senate and now awaits President Donald Trump’s signature.
The legislation gives the US president the authority to impose additional tariffs of up to 100% on certain imports from major buyers of Russian crude oil and natural gas.
Does India face a 100% tariff immediately?
No.
The passage of the legislation does not automatically trigger a 100% tariff on Indian goods.
The bill must first be signed into law by President Trump. Even after that, imposing the tariff would remain a separate executive decision rather than an automatic consequence of the legislation.
The legislation also contains provisions allowing potential waivers or exemptions under specified circumstances.
India prioritises energy security
India's Ministry of External Affairs responded to the US congressional action on September 17.
The ministry said India remains firmly committed to ensuring energy security for its 1.4 billion people and will continue to diversify its sources of energy based on changing market conditions.
For now, New Delhi is taking a wait-and-watch approach while assessing the final legislation, the US administration's implementation plans and the implications for trade negotiations.
Why Russian oil matters to India
India is one of the world's largest crude oil importers and relies heavily on overseas supplies.
According to data cited by the Global Trade Research Initiative, more than 88% of India's crude-oil requirement is met through imports.
Russia accounted for approximately 51.1% of India's crude imports in July 2026, with Indian purchases from Russia valued at about $7.27 billion that month.
This makes the US legislation particularly relevant to India's energy strategy.
Potential impact on India-US trade
The legislation comes while India and the United States continue to work through broader trade and tariff negotiations.
The US remains India's largest export destination. India's exports to the US rose 21.83% to $8.4 billion in August, while imports from the US increased 65.78% to $5.97 billion, according to Business Today.
A significantly higher US tariff could therefore create additional pressure on Indian exporters and complicate ongoing bilateral trade discussions.
Exporters watch developments closely
Indian exporters are also watching the situation carefully.
Industry representatives have expressed concern that the legislation could create substantial uncertainty for businesses that depend on the US market.
The impact would depend heavily on whether the Trump administration actually uses the tariff authority, the level of any tariff imposed and whether exemptions are negotiated.
India has been diversifying energy supplies
India has increased efforts to diversify its sources of crude oil, purchasing from Russia as well as suppliers in the Middle East, the Americas and other regions.
The government has repeatedly maintained that its energy purchases are guided by national interest, supply security and market conditions.
However, replacing large volumes of Russian crude quickly could affect procurement costs, refinery economics and domestic energy prices.
Trade talks face another variable
The new legislation adds another variable to the ongoing India-US trade negotiations.
Indian officials will have to assess whether a negotiated exemption or other arrangement can shield Indian exports from potential additional tariffs while maintaining access to competitively priced energy.
Economists cited by Business Today have warned that a higher tariff could weigh on India's exports and add downside risks to growth.
Eyes now on Trump’s decision
The immediate focus is on whether President Trump signs the legislation and, if so, how his administration chooses to use the powers it provides.
For India, the key questions are whether additional tariffs will actually be imposed, what rate would apply, which products would be covered and whether exemptions can be secured.
Until those details become clear, New Delhi is expected to continue monitoring the situation while emphasising energy security, diversified sourcing and ongoing trade negotiations with Washington.
