Indian Exporters Express Concern Over US Law Authorizing 100% Tariffs on Countries Buying Russian Energy

A newly signed US law, the Sanctioning Russia and Iran Act, authorizes President Donald Trump to impose tariffs of up to 100 per cent on goods from countries that are among the top five purchasers of Russian crude oil or natural gas, including India. Indian exporters and trade organizations have expressed concern about the potential impact on bilateral trade, which stood at over USD 140 billion in 2025–26. Trade bodies warn of disruption to key export sectors, while policy think tank GTRI has advised India not to compromise its energy procurement policy in response to tariff pressure.

New legislation in the United States empowering President Donald Trump to impose tariffs of up to 100 per cent on goods from India has cast a shadow of uncertainty over trade relations between the two nations, with exporters cautioning that any such measures, if applied, could place considerable strain on India's exports to American shores. Trump signed the Sanctioning Russia and Iran Act on September 18, a law that would authorise the imposition of considerable tariffs on Russia and countries that purchase its energy. Federation of Indian Export Organisations President SC Ralhan said that higher US tariffs could halt trade flows, as buyers would be unable to manage duties at those levels. The Global Trade Research Initiative noted that the legislation leaves India exposed to potential tariffs of up to 100 per cent, and that these measures could be used as a bargaining tool to pressure New Delhi into curbing its procurement of Russian oil or accepting a bilateral trade deal on disadvantageous terms, potentially in return for restoring the 18 per cent rate referenced in the 6 February joint statement, while recommending that India weigh its long-term energy security interests against any near-term concessions on tariffs.

Indian Exporters Express Concern Over US Law Authorizing 100% Tariffs on Countries Buying Russian Energy

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Indian Exporters Express Concern Over US Law Authorizing 100% Tariffs on Countries Buying Russian Energy

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