100% tariffs on India? US House passes bill authorising new duties on Russia oil buyers

India could face a new round of US tariffs due to its Russia oil purchases after the House of Representatives passed legislation authorising President Donald Trump to impose duties of up to 100% on countries buying Russian crude oil and natural gas. The bill, which also targets Russia and Iran, now goes to Trump for his signature.

The Lindsey O Graham Sanctioning Russia and Iran Act of 2026, passed by the Senate last month, cleared the House in a 262-159 vote on Wednesday evening. The legislation would give Trump additional powers to impose tariffs on countries that continue to buy Russian energy or facilitate sanctions evasion.

Also read: India's $40.8 billion Russian crude imports put it in Trump's 100% tariff line of fire


The bill passed with support from 203 Republicans, 58 Democrats and one Independent. Seven Republicans and 152 Democrats voted against it, with Democratic opposition largely focused on the breadth of the tariff powers being granted to the president.

India bought $40.8 billion worth of crude oil from Russia in FY2026, accounting for 30.3% of its total crude imports of $134.7 billion, according to the Global Trade Research Initiative (GTRI). The dependence increased further by July 2026, when Russia accounted for 51% of India's imported crude oil.

"India currently faces a 10% headline tariff in the US (under Section 301), which applies to ~55% of India’s exports to the US, with the remaining 45% either exempt (generic pharmaceuticals, smartphones, etc) or facing Section 232 tariffs (steel, aluminium, auto parts, etc). India’s current effective tariff rate in the US is estimated at ~12%, lower than that for Bangladesh (~25%), China (~22%), Vietnam (~14%), and Indonesia (~14%)," Madhavi Arora - Chief Economist and Harshal Patel - Research Associate, Emkay Global told ET Online.

What India faces after the US House vote

India is among the top five purchasers of Russian petroleum products and could be exposed to broad new US tariffs if Trump chooses to exercise the authority. The legislation provides for an additional 100% tariff on the top five energy importers and countries that import Russian crude oil or natural gas, or facilitate sanctions evasion.

The bill also allows the president to impose a blanket 500% tariff on Russian goods imported into the US. The additional tariff authority targeting energy buyers would expire after five years.

"This development increases tariff uncertainty, and risks derailing the recovery in India’s exports to the US since the IEEPA tariffs were struck down in Feb-26. India’s average monthly exports to the US had dropped to $6.5bn during Sep-25 to Feb-26 (when India faced 50% tariffs), vs $8.1bn in the preceding six months. This has now risen to $8.5bn (from Mar-26 to Aug-26) with the tariff rate having dropped to 10% (and largely in-line with peers); a significantly higher tariff being imposed under this bill would again likely see India’s exports to the US falling materially," Emkay Global's Arora and Patel added.

The proposed measures come as Washington seeks to reduce the dependence of countries such as India and China on Russian oil and gas. The bill's passage also follows renewed efforts by pro-Ukraine groups to lobby US lawmakers for continued support for Kyiv.

Democratic Senator Richard Blumenthal said after the bill's passage: "China and India, you better buy your oil and gas somewhere else."

Senator Jeanne Shaheen said Russia was using a "shadow fleet" to sell oil at below-market prices, with much of it going to countries including China and India.

"China is the top user of Russian oil and gas, and we need to send a very strong message, not just to Putin, but to China, and to anybody who is buying Russian oil and gas, that they are going to pay a price for that," Shaheen said.

The bill would also impose sanctions on Russia's leadership and energy sector, along with vessels accused of helping Moscow evade sanctions on oil deliveries. It includes additional sanctions on Iran.

Also read: India, US achieve diplomatic breakthrough with trade deal; tariffs on Indian goods cut to 18%

The power this bill gives Trump

The legislation would expand Trump's authority to impose tariffs on countries buying Russian energy, rather than limiting the measures to Russian goods. The proposed powers cover India, China and other countries that purchase Russian crude oil or natural gas, as well as those facilitating sanctions evasion.

The bill's tariff provisions drew opposition from Democrats who argued against giving the president wider authority over trade policy.

"What we're not for is giving more tariff authority to this president," Congressman Richard Neal, a Democrat, said during debate on the bill.

The Senate passed the legislation 86-11 last month, but its progress in the House slowed before Wednesday's vote. The House passed the bill on its final expected day of voting before the November 3 elections.

The legislation is named after Senator Lindsey Graham, the South Carolina Republican who died in July after spending more than a year building support for it.

Trump's signature is now required for the bill to become law. Its passage comes days before Chinese President Xi Jinping's official visit to the US.