HighLights
  1. US law allows 100% tariffs on countries buying Russian oil.
  2. India at risk due to significant Russian crude oil imports.
  3. India conveyed concerns to US regarding energy security impact.

US President Donald Trump has signed a new law that gives his administration the power to impose tariffs of up to 100 per cent on countries that continue to buy Russian oil and gas. The move is expected to have major implications for countries such as India and China, two of the biggest buyers of Russian crude. However, it is still unclear whether and when the US will actually impose such tariffs.

What Does The Law Say?

The legislation, called the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, gives the US President new powers to target countries that buy Russian energy. Under the law, the administration can impose tariffs of up to 100 per cent on goods imported into the US from countries that fall into certain categories. These include the five biggest importers of Russian crude oil or gas, countries that knowingly make new purchases of Russian energy, and some countries accused of helping Russia avoid sanctions.

How Is India At Risk?

While the law does not name any specific countries for the new tariffs, it sets out certain conditions under which a country could become subject to the levies. It is also not clear how the US will determine which countries qualify as the five largest importers or which countries are helping Russia evade sanctions. There are concerns that India may have to face fresh tariffs as Russian crude has become a very large part of India's oil imports.

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According to data cited by the Global Trade Research Initiative, India imported USD 40.8 billion worth of Russian crude in FY2026, with Russian oil accounting for about 30.3 per cent of India's total crude imports. If India is targeted, Indian goods entering the US could face very high tariffs.

India’s Response

India has already raised its concerns with the US. MEA spokesperson Randhir Jaiswal said India had conveyed to senior US officials the possible impact of the legislation on India's energy security, international energy markets and India-US relations.

What Happens Next?

Within 30 days of the law coming into force, the US President is required to increase tariffs on goods imported from any country that meets the law’s criteria. The next step will be for the US administration to determine which countries qualify under these conditions and decide what tariff rate to impose on their goods.

ALSO READ: From 26% To 10 & Now 100% Tariff Threat: Inside The 18-Month US-India Trade Rollercoaster

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