'Indian side has made clear...': MEA as Russia sanctions bill threatening 100% tariff clears US House

The US House of Representatives has approved a Bill that could provide President Donald Trump more leverage in trade discussions with India. Known as the 'Lindsey O. Graham Sanctioning Russia and Iran Act of 2026', this legislation enables Trump to impose duties of up to 100% on nations importing Russian oil and natural gas. India and China are among the largest importers of Russian energy resources.

The Bill passed the Senate with overwhelming support last month, and the House approved it with a 262-159 vote on Wednesday, following 58 Democrats joining Republican lawmakers in backing the measure. The legislation now awaits Trump's signature. The US President lost the authority to impose reciprocal tariffs in February after the US Supreme Court invalidated the use of the 1977 International Emergency Economic Powers Act (IEEPA) in a decision related to trade restrictions.

Since then, the administration has sought alternative methods to impose trade barriers. Although India has yet to officially sign a trade deal with the US, it is reportedly seeking a tariff advantage over competitors. Indian government officials have emphasized their commitment to energy security. Trade analysts believe that the passage of this Act strengthens the legal basis for imposing Russian oil-related tariffs.

Once signed, the US Trade Representative will designate the targeted countries and recommend tariff rates. Countries would typically have 180 days to decrease Russian energy imports or negotiate with the US. However, the president can expedite this process. While India has not signed a trade agreement with the US, both nations reached a deal and a joint statement in February.

India has also taken steps to accommodate US demands, such as offering tax holidays for foreign companies setting up data centers and increasing energy imports from the United States. In July, the US imposed 10% tariffs on India, lower than the proposed 12.5% rate, following a USTR report on forced labor imports. However, US inflation pressure and mid-term elections on November 5 may limit Trump's ability to impose additional tariffs.