Will India resist US tariff pressure amid trade deal talks? Trump plans to sign Russia sanctions bill

US President Donald Trump plans to sign the Sanctioning Russia and Iran Act, which gives the president the power to impose tariffs of up to 100 per cent on major importers of Russian energy, including India.

"The President plans to sign the bill," a White House official told PTI when asked about the presidential signing of the Act into law. The statement came a day after the US House of Representatives approved the bill.

What is Sanctioning Russia and Iran Act?

The Lindsey O. Graham Sanctioning Russia Act of 2026 was introduced in the US Senate on September 16.

Quick answers to key questions

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QUESTIONS

The Sanctioning Russia and Iran Act allows the US President to impose tariffs up to 100% on countries that continue importing Russian energy. As one of the largest importers of Russian oil, this impacts India significantly.

India is concerned because it relies heavily on Russian oil imports, and the potential tariffs could increase its import costs, straining its energy security and economic interests.

US tariffs could complicate trade negotiations by leveraging pressure on India to reduce Russian oil purchases, possibly leading to concessions in the ongoing bilateral trade discussions.

India is determined to protect its trade and economic interests and plans to work closely with industry bodies to mitigate the implications of these tariffs, while continuing to source energy from various countries.

Experts suggest India should not succumb to US pressure and should continue buying Russian oil as long as it remains commercially viable, while also working on diversifying its energy sources.

The Sanctioning Russia and Iran Act seeks to impose sanctions on Russia's leadership and energy sector — as well as on collaborators in Moscow's defence industry and its so-called shadow fleet.

It proposed to “increase the rate of duty up to 100% ad valorem on all goods imported into the US from a country that was among the five largest importers of Russian-origin crude oil or natural gas if such country knowingly makes new purchases of such products after enactment of the bill.”

It, however, states that sanctions and other measures under this title shall not apply to "the conduct or facilitation of a transaction for the provision of agricultural commodities, food, medicine, medical devices, humanitarian assistance, or for humanitarian purposes."

The bill also bestows on the President the power to waive the application of any sanctions provision with respect to a foreign person, any restriction with respect to a person, or any duty under the title. It also mentions certain conditions and requirements before exercising this power.

The bill gives the White House room to make case-by-case decisions rather than applying every sanction uniformly.

Why does it matter for India?

India is among the top importers of oil from Russia. India was the second-largest buyer of Russian fossil fuels in June 2026, importing a total of EUR 5.5 bn of Russian hydrocarbons, according to June 2026 analysis of Russian fossil fuel exports and sanctions by Centre for Research on Energy and Clean Air (CREA).

Besides, the trade and tariff negotiations between India and the US are underway, and a deal is yet to be finalised.

A report by the Global Trade Research Initiative (GTRI) argued that Washington could use the prospect of tariffs to pressure New Delhi to reduce Russian oil purchases and make concessions in a bilateral trade agreement.

According to GTRI, the tariff threat assumes significance given India's heavy dependence on imported crude. India imports more than 88 per cent of its crude oil requirements, news agency ANI reported.

GTRI said India's crude sourcing pattern has changed sharply in recent years. Until 2022, Gulf countries accounted for more than 55 per cent of India's crude supplies, while Russia's share was below 15 per cent.

“India should not allow US tariff threats to determine its energy policy,” the report said, adding that discounted Russian crude has helped lower the country's import bill, strengthen energy security and contain inflation.

“India should continue buying Russian oil as long as it remains commercially competitive and negotiate firmly with Washington without granting unilateral trade concessions,” GTRI said.

The report, however, noted that the actual impact on Indian exports can be assessed only after the US announces the tariff rates, product coverage and implementation timetable.

Meanwhile, experts told the Economic Times that the impact of potential new tariffs on Indian exports under the US' Lindsey O Graham Sanctioning Russia and Iran Act can be assessed only after Washington announces the actual levies, product coverage and implementation timetable.

What did India say?

India reacted firmly to the passage of the Sanctioning Russia Act of 2026 in the US Congress, saying that the Indian side has "made clear its determination to take all necessary measures to protect its trade and economic interests."

The Ministry of External Affairs warned that the move carries potential implications for ties between New Delhi and Washington as well as for the global energy market.

The MEA said, “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.”

“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests. Government will work closely with Indian trade and industry bodies to deal with the implications of these developments,” the ministry's statement read.