Trump’s Russia sanctions Bill: What 100% tariffs on Russian oil buyers can mean for India

The new law signed by US President Donald Trump in 2026 allows the imposition of up to 100% tariffs on countries, including India and China, that purchase Russian oil and gas. India, which relies on crude oil imports for over 88% of its needs, is particularly affected as Russia currently supplies nearly half of its crude. The Trump administration will decide how to implement the legislation, but given the prevailing energy market crisis due to the West Asia conflict, the US might exercise restraint.

India has communicated its concerns to Washington and is working closely with Indian trade and industry bodies to mitigate the impact. Despite sanctions on Russian oil majors and the threat of additional penalties, Russian crude remains India's most practical and competitive source of supply, difficult to replace in the current market.

Analysis suggests that Russian crude will continue to play a crucial role in India's oil import strategy.