India studies US tariff threat over Russian oil

India is evaluating the implications of potential US tariffs on Russian oil imports as Washington escalates pressure on nations still purchasing Russian energy, according to Commerce and Industry Minister Piyush Goyal. Reuters reported Goyal's statement came just days after the US House of Representatives passed a comprehensive sanctions and tariffs bill targeting Russia over its Ukraine war involvement.

President Donald Trump subsequently signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 into law, granting his administration the authority to impose tariffs of up to 100% on countries continuing to buy Russian oil and gas. This legislation, effective within 30 days, expands sanctions on Russia's energy and defense sectors, targeting its "shadow fleet" and other entities accused of aiding Moscow in evading sanctions.

The measure could expose major buyers like India and China to higher duties on their oil and gas imports from Russia. While India and China are among the top Russian crude oil consumers, the law does not specify which countries will be targeted, leaving it to the Trump administration's discretion to determine eligibility and applicable tariff rates.

For India, the potential tariff risk adds more uncertainty to its closely watched trade ties with the US, as the nation has defended its Russian oil purchases on energy-security grounds, emphasizing the importance of affordable crude to keep domestic fuel costs manageable. The measure also arrives amid India's continued heavy reliance on imported crude to satisfy its energy demands, with Russian oil becoming a crucial component of the country's import mix since Moscow's invasion of Ukraine, following Western sanctions that disrupted traditional trade channels.