Thursday, September 17

Trump’s new policy: India faces potential 100% US tariff over Russian oil purchases

 

Trump’s new policy: India faces potential 100% US tariff over Russian oil purchases

WASHINGTON, 17 September, 2026 (Kamran Raja): The US House of Representatives has approved legislation aimed at increasing economic pressure on countries purchasing Russian oil and gas, potentially giving President Donald Trump authority to impose additional tariffs of up to 100 percent on imports from major buyers such as India and China. The legislation, approved by a vote of 262 to 159, is intended to restrict Russia’s energy and defence revenues and increase financial pressure on Moscow over the war in Ukraine. Under the measure, the US president would have the authority to impose tariffs of up to 100 percent on goods imported from countries that continue buying Russian energy, although the final tariff rate, affected products and timing of implementation would depend on subsequent US decisions. The legislation also targets Russia’s energy and defence sectors, senior Russian officials and vessels associated with its so-called shadow fleet, while allowing the president to grant exemptions in certain circumstances based on US national interests.

India’s Ministry of External Affairs said it had taken note of the legislation and was monitoring further developments, stressing that India would continue purchasing oil from various sources to meet the energy needs of its 1.4 billion people. India has remained a major buyer of discounted Russian crude since Western sanctions were imposed following Russia’s invasion of Ukraine in February 2022. Reports indicate that Russian crude accounted for around 30 percent of India’s total oil imports in fiscal year 2026. Indian refiners have also sought to diversify supplies by increasing purchases from countries including the United States, Brazil, Canada, Venezuela and nations in Africa. If the US imposes significantly higher tariffs, Indian exporters could face increased costs and reduced competitiveness in the American market, while a sharp reduction in Russian oil purchases could force Indian refiners to seek alternative supplies at higher prices. Russia has criticised the proposed US measures, with Kremlin spokesman Dmitry Peskov warning that new sanctions could make efforts toward a peace agreement in Ukraine more difficult. The latest legislation forms part of broader US efforts to increase economic pressure not only on Russian companies but also on countries that continue purchasing Russian energy.