Trump may decide India's fate over 100% tariff risk in 10 days

US President Donald Trump could soon impose tariffs of up to 100% on imports from countries buying Russian oil and gas under the Russia sanctions law, which gives him the authority to target major buyers of Russian energy, including India.

Trump is expected to make a decision on invoking the law within the next 10 days, US Ambassador to India Sergio Gor said, leaving New Delhi awaiting clarity on whether it could face fresh trade penalties.

Also read: 'Big picture, big framework, big items are done': Sergio Gor says India-US trade deal very close ahead of Marco Rubio's visit


Speaking at the Bloomberg New Economy forum, Gor said Trump was required to make a determination within 30 days of the legislation’s passage, but had yet to impose sanctions on any country under the law.

“He has to make a determination in the next I believe 10 or so days,” Gor said, adding that the President was expected to make a decision over the coming days.

The legislation, passed by the US Congress with overwhelming bipartisan support in the Senate, authorises the President to impose sanctions on countries that purchase Russian oil and gas or help evade existing sanctions. It secured 86 votes in the 100-member Senate, Gor said.

Trump has final say on sanctions, India awaits clarity

Gor stressed that the proposed measures were not aimed at any specific country, saying Washington’s objective was to bring the Russia-Ukraine war to an end rather than punish countries buying Russian energy.

“The goal is not to punish anyone. The goal is to try to bring an end to this war,” Gor said.

He added that the US administration understood countries could not immediately discontinue their energy supplies and wanted to work with partners to gradually reduce the funds flowing towards the war.

Asked whether India could secure sanctions relief or exemptions, Gor said the decision rested with Trump. He did not indicate whether India would receive any such relief.

The proposed sanctions have implications for India because the legislation gives Trump the authority to target countries involved in purchases of Russian oil and gas. However, the President's decision on whether and how to exercise that authority remains pending.

Also read: Trump has learnt his India lesson the hard way. Will he own up?

US-India trade deal: 'Big items are done'

Separately, Gor expressed confidence that India and the US would conclude a trade deal, saying the two sides had made substantial progress despite the complexity of the negotiations.

“The big picture, the big framework, the big items are done,” Gor said, adding that smaller details remained to be resolved and new concerns could emerge as the negotiations progressed.

The discussions have been underway for around a year and a half, Gor said, describing their pace as unusually fast compared with other trade agreements. He added that the US administration had to revisit parts of an earlier trade arrangement after the Supreme Court ruled the law underpinning it unconstitutional.

Gor also said Washington was keen to expand business cooperation with India across defence, information technology, data centres and chip manufacturing. He added that investments by US companies in India could also support job creation in the United States.

On artificial intelligence, Gor said India was well positioned to become a major development hub, with partnerships between Indian firms and leading US technology companies offering opportunities for both countries.

“India would be an incredible fit for AI, for tech development right here on their own soil, but partnering with some of our best companies is a win-win situation,” he said.