NEW DELHI: US President Donald Trump late Friday (US time) signed the controversial ‘Lindsey O Graham Sanctioning Russia and Iran Act of 2026’, authorising US to impose tariffs of up to 100% on imports from the five largest foreign buyers of Russian crude oil and natural gas, putting India and China at direct risk of penalties.
The Act provides for property-blocking sanctions on foreign vessels that knowingly transport certain Russian-origin products, including crude oil, uranium and coal.
The US Senate passed the Bill on August 7, while the House of Representatives approved it on September 16. The law will take effect within 30 days. During this period, the US Trade Representative will identify countries to be targeted and recommend tariff rates. The law provides a chance to countries to reduce Russian energy purchases within 180 days and negotiate with US for a lower tariff. Apart from China and India, Turkiye, EU and Myanmar are other three top importers of Russian crude.
India, which sourced around 30% of its crude oil imports from Russia in FY2026 — $40.8 billion out of total crude imports of $134.7 billion — now faces the risk of tariffs of up to 100% on its exports to the US.
India has maintained it will take necessary measures to protect its economic interests. The Ministry of External Affairs (MEA) had earlier said the law could have affect bilateral ties and international energy market.
“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 made clear its determination to take all necessary measures to protect its trade and economic interests,” the MEA said.
India, negotiating a trade deal with the US, faces 10% additional tariff over MFN rates under Section 301.
Dr Manoranjan Sharma, Chief Economist, Infomerics Ratings, said the signing of the Bill by the US President does not automatically trigger an across-the-board levy on India, but the threat of higher tariffs has become a potent instrument of economic, geopolitical pressure.
Trade and geopolitical analysts said India should negotiate with US to limit the law’s impact. “New Delhi should seek product-specific exclusions, tariff-rate quotas, transition periods, a phased reduction in Russian crude purchases and a clear ceiling below the 100% maximum. The waiver provision in the US law creates diplomatic space; India should use it,” an analyst said.