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India

US unlikely to slap punitive tariff on India’s Russian buy

The clarification came a day after US Ambassador to India Sergio Gor said Trump would soon decide on the sanctions under the new law.

Pushpita Dey

NEW DELHI: The US is unlikely to penalise India under the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, which authorises President Donald Trump to impose tariffs of up to 100% on countries buying Russian oil and gas, official sources said on Thursday.

Asserting that the government is confident that India will remain protected from US sanctions, sources pointed out that New Delhi has clearly communicated to Washington India’s position.

“From what we sense, the US government will not put sanctions on India. We have been in touch with the US team and India’s standpoint has already been conveyed regarding the challenges that could arise because of that,” a government official said.

The clarification came a day after US Ambassador to India Sergio Gor said Trump would soon decide on the sanctions under the new law. He also indicated the Trump administration was likely to adopt a pragmatic approach towards India rather than demand an immediate halt to its purchases of Russian energy.

Indian officials pointed out that the country had previously avoided US sanctions despite purchasing the S-400 Triumf missile defence system from Russia under a deal worth more than $5 billion.

“Even previously, there was a threat of US sanctions when India bought Russian weapons a few years ago, but we didn’t get sanctions for buying the S-400 Triumf missile system.

The Countering America’s Adversaries Through Sanctions Act (CAATSA) doesn’t say that just because it has been signed by the President, the US government needs to apply it,” another official said.

CAATSA is a US federal law that provides for sanctions against Iran, Russia and North Korea. Although India has longstanding commercial and defence ties with Russia, the application of sanctions depends on the relevant legal provisions and decisions by the US administration.

The US House of Representatives passed the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 in September, giving Trump broad powers to impose sanctions on Russia and tariffs of up to 100% on countries purchasing Russian oil.

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