100% tariff threat on India over Russian oil imports? US Targets India in new Russia bill, how it will impact Indians

US India relations have come under fresh strain after a bipartisan group of US senators introduced the Sanctioning Russia Act of 2026. The bill proposes tariffs of up to 100 per cent on countries that continue importing large volumes of Russian crude oil. India has emerged as one of the five countries targeted under the proposal, along with China, Slovakia, Hungary and Azerbaijan. The move has sparked criticism in New Delhi, particularly because several European countries and allies such as Japan have been exempted under the proposed framework.

What does the new US Senate bill propose?

The proposed legislation aims to reduce Russia’s oil revenues, which US lawmakers say help finance Moscow’s war in Ukraine. The revised bill replaces an earlier proposal that sought tariffs of up to 500 per cent on countries buying Russian energy. Instead, it caps the penalty at 100 per cent and limits its scope to the five largest buyers of Russian crude. The bill has bipartisan backing in the US Senate. It is intended to allow Congress to impose tariffs on countries that continue supporting Russia’s energy exports.

Why are European countries exempt?

One of the most debated provisions of the bill is the exemption granted to several US allies. Countries importing less than 15 per cent of Russia’s total natural gas exports, and taking steps to reduce their dependence on Russian energy, would not face the proposed tariffs. According to Senate officials, this exemption effectively covers around 15 European countries as well as Japan. Indian officials have criticised the provision. They argue that countries still importing Russian energy are being treated differently from India.

How could bill impact India?

If the bill becomes law and the proposed tariffs are enforced, it could significantly affect India US trade relations. Higher tariffs could make Indian exports to the US more expensive. This could reduce their competitiveness in the American market. The proposal could also complicate ongoing trade negotiations between the two countries. India currently imports more than 88 per cent of its crude oil requirements. Russian crude has become an important source of discounted supplies since 2022. Any pressure to reduce these imports could increase India’s energy costs. It could also have implications for inflation and fuel prices.

India calls proposal ‘double standard’

Indian officials have strongly criticised the proposed legislation. They have called it a case of “double standards” because European countries have been excluded from the tariff provisions despite continuing to import Russian energy. The issue has also triggered political debate in India. The opposition has sought clarity from the government on how it plans to respond if the legislation moves forward.

Will the bill become law?

The proposal still faces several legislative hurdles before it can become law. Although it has bipartisan support from multiple senators, it must pass both chambers of Congress before reaching the US President. The bill also includes a presidential waiver. It would allow the White House to suspend tariffs on individual countries if imposing them is considered harmful to US national security or the global economy. Analysts believe this provision gives the administration flexibility. It could be used if strict enforcement risks disrupting global oil markets or pushing crude prices sharply higher.