The US House of Representatives has passed a Bill that could give President Donald Trump the power to impose tariffs of up to 100% on countries that continue buying Russian oil and gas, putting India and China in focus.
The Bill, formally called the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, was passed on Wednesday, September 16. It had already cleared the US Senate in August by 86-11 and will now go to Trump. Reuters reported that the legislation is aimed at increasing economic pressure on Russia over its war in Ukraine and also targets Russia’s energy and defence sectors and its so-called “shadow fleet” of tankers.
India has reacted by saying it remains committed to protecting its energy security and trade interests. According to the Ministry of External Affairs, India will continue to source energy based on “diversified sourcing” and evolving market conditions, while taking necessary measures to protect its economic interests.
So what exactly does the Bill say, why is India being discussed, and does it mean Indian goods will immediately face a 100% tariff?
What the Bill?
The legislation is designed to increase economic pressure on Russia over its war in Ukraine. It targets Russia’s energy and defence sectors, senior officials and the country’s “shadow fleet” of tankers used to evade Western sanctions. It also contains provisions relating to Iran.
The Bill is named after Republican Senator Lindsey Graham, who died in July this year and had pushed the legislation since 2025.
The important provision for India is the one dealing with countries that continue to purchase Russian energy.
Why can India face a 100% tariff?
The Bill gives the US President the authority to impose tariffs of up to 100% on certain countries that continue buying Russian crude oil or natural gas.
According to The Hindu, countries that could be targeted include the five largest importers, by total volume, of Russian-origin crude oil or natural gas in the 12 months before the law takes effect, if they knowingly make new purchases after a specified 30-day period. Countries identified as major facilitators of Russian oil sanctions evasion could also fall under the provision.
The legislation does not automatically impose a 100% tariff on India. Instead, it gives Trump the authority to impose such tariffs if the conditions in the legislation are met and he chooses to use that authority.
Why is India in the picture?
India has become a major buyer of Russian crude since Western sanctions and restrictions reshaped global energy markets after Russia invaded Ukraine in 2022.
India had reportedly reduced its purchases of Russian oil towards the end of 2025, but imports increased again in 2026, with Indian purchases reaching an 11-month high in April following disruptions to energy supplies linked to the US-Israel war with Iran.
Reuters has also described India as a major buyer of Russian oil and reported that New Delhi continues to defend its Russian energy purchases on the grounds of energy security.
Has the US imposed a 100% tariff on India?
Not at this stage. The Bill has given Trump the power to impose tariffs of up to 100% on countries covered by the relevant provisions. It does not mean that a 100% tariff has automatically been imposed on Indian goods.
India's inclusion in the legislation does not itself mean that Indian exports are now subject to a 100% tariff. The next step is for Trump to sign the Bill into law. After that, any decision to impose tariffs would depend on how the administration applies the provisions.
What would a 100% tariff mean for India?
If the US were to impose a 100% tariff on Indian imports under this legislation, Indian goods entering the US could face duties equivalent to the value of the goods.
That could make Indian products more expensive in the US market and affect exporters whose businesses depend heavily on American buyers. The actual impact would depend on which products were covered, whether exemptions were granted and how the US administration implemented the measure.
It would also come at a sensitive time for India-US trade relations. New Delhi and Washington have reportedly been negotiating a preliminary trade deal, while India has also been trying to manage the consequences of existing US tariff measures.
Why are some US lawmakers opposed to the Bill?
The disagreement in the US Congress is not primarily over whether Russia should face sanctions. The dispute is also about how much power the Bill gives Trump to impose tariffs on other countries.
Some Democrats and Republicans opposed the legislation because of concerns over the sweeping powers it gives the President. Gregory Meeks, the ranking Democrat on the House Foreign Affairs Committee, argued that Trump already had powers to sanction Russia and questioned giving him additional tariff authority.
Reports also said that some Democrats were concerned that the tariff provisions could also be used against US allies, while some Republicans were worried about the effect of additional tariffs on American consumers.
The Bill nevertheless passed the House with 262 votes in favour and 159 against.
What has India said?
India has said that it will protect its energy security and economic interests. The government said it had already discussed the possible implications of the legislation with US interlocutors and had clearly communicated its concerns regarding bilateral ties and the international energy market.
The government said it would work with trade and industry bodies to respond to the implications of the US move.