India is adopting a wait-and-watch approach to the US threat of imposing additional tariffs of up to 100% on countries importing Russian energy, while remaining confident that concerns arising from the measures can be addressed through the ongoing Bilateral Trade Agreement (BTA) negotiations, according to a senior Commerce Ministry official.
“India won’t be reacting to it immediately. India and the US continue to remain engaged on the issue of trade, and any issues like Section 301 or tariffs on Russian oil importers will be addressed through the negotiations. India is closely watching all developments,” the official said.
The US Senate has passed a Russia sanctions Bill that would allow the imposition of additional tariffs of up to 100% on major buyers of Russian energy. The Bill now goes back to the House of Representatives, while the White House has indicated that President Donald Trump would sign it if passed.
The proposed measures could expose India, currently the second-largest buyer of Russian crude, to significantly higher US tariffs. Russia accounted for 30.3% of India’s crude oil imports in FY26, with imports valued at $40.8 billion.
Under Section 113 of the Bill, the US president would be empowered to impose additional tariffs of up to 100% on goods from countries that continue to buy Russian crude oil or natural gas 30 days after the law takes effect and rank among the five largest buyers of Russian energy.
The Bill’s sponsors have identified China, India, Slovakia, Hungary and Azerbaijan as the five largest buyers of Russian energy. Any additional tariffs imposed on these countries would come on top of existing US duties, including those levied under Sections 301 and 232, as well as anti-dumping and countervailing duties.
The prospect of a higher tariff burden has raised concerns among Indian exporters, particularly as the US remains one of India’s largest export markets. However, senior government officials have indicated that India is unlikely to reduce its imports of Russian energy at this stage.
The government’s approach suggests that it will seek to use the BTA negotiations to address the potential impact of the proposed US measures rather than take any immediate steps to alter its Russian energy purchases.
