India studying details of US tariffs on Russian oil buyers: Piyush Goyal
India is examining details of potential US tariffs on Russian oil buyers, Piyush Goyal says. Washington is increasing pressure on nations still purchasing Russian energy resources. A new US law allows tariffs up to 100% on Russian oil and gas importers. Major buyers like India and China face potential higher duties on their US exports. The legislation takes effect within thirty days, impacting…
Indian Commerce and Industry Minister Piyush Goyal informed on Monday that the nation is examining the specifics of potential US tariffs on Russian oil purchasers, amid escalating pressure from Washington on nations continuing to buy energy from Russia. This comes after the US House of Representatives passed a comprehensive sanctions and tariffs bill, which President Donald Trump promptly signed into law.
The newly enacted Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 grants the administration the authority to impose tariffs of up to 100% on countries persisting in buying Russian oil and gas. This could put major buyers like India and China at risk of higher duties on their exports to the US, as the legislation expands sanctions on Russia’s energy and defense sectors, targeting its "shadow fleet" and other entities involved in evading sanctions.
The law, set to take effect within 30 days, allows the president to impose duties of up to 100% on goods imported from the five biggest buyers of Russian crude oil or natural gas, based on the volume of purchases made in the 12 months preceding the law's enactment. It also covers countries that knowingly acquire new Russian oil or gas after the law's implementation, as well as the top five countries assisting Russia in evading sanctions.
India and China are among the major purchasers of Russian crude, placing them at the forefront of the potential tariff risk.
However, the legislation does not explicitly name the countries that will ultimately be targeted, leaving it to the Trump administration to decide which nations meet the criteria and face the specified tariff rates. For India, this adds another layer of uncertainty to its closely monitored trade relationship with the US, which has historically defended its purchases of Russian oil on grounds of energy security.
As India continues to heavily rely on imported crude to meet its energy demands, Russian oil has become a significant component of its imports since Moscow's invasion of Ukraine, with Indian refiners increasing purchases of discounted Russian crude amid disrupted traditional trade flows.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
