US Tariff Law Targeting Russian Oil Buyers Raises Alarm Among Indian Exporters

A newly signed US law authorizes President Donald Trump to impose tariffs of up to 100 per cent on goods from countries, including India, identified as top buyers of Russian crude oil or natural gas. Indian exporters, trade organizations, and think tanks have raised concerns about the potential impact on bilateral trade, which reached $140.76 billion in 2025-26. The actual effect on Indian exports depends on Washington's final announcements regarding tariff rates, product coverage, and implementation timelines.

Trump signed the Sanctioning Russia and Iran Act on September 18, a bill designed to impose considerable tariffs on Russia and countries that buy its energy exports. The proposed law would allow tariffs of as much as 100 per cent to be imposed on countries that buy Russian oil and gas, including China and India. FIEO President SC Ralhan said that tariffs at the proposed levels would effectively halt export activity, as importers would be unable to absorb such duties. The Global Trade Research Initiative has found that the new law leaves India exposed to tariffs of up to 100 per cent, and that it may be deployed as a bargaining tool to press the country into scaling back its Russian oil imports or accepting a bilateral trade deal on disadvantageous terms, potentially in return for restoring the 18 per cent rate set out in the 6 February joint statement, with the think tank noting that India faces a broader calculation between its long-term energy security needs and any near-term relief on tariffs.

US Tariff Law Targeting Russian Oil Buyers Raises Alarm Among Indian Exporters

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US Tariff Law Targeting Russian Oil Buyers Raises Alarm Among Indian Exporters

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