US Senate Backs Bill Allowing Up to 100% Tariff on Buyers of Russian Oil: GTRI

The US Senate has approved legislation that could allow additional tariffs of up to 100% on imports from countries that continue buying Russian crude oil and natural gas, exposing India to potentially steep additional duties, according to the Global Trade Research Initiative.

The Senate passed the bipartisan Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by an 86-11 vote on Aug. 7, GTRI said in a report.

Under the proposed legislation, countries that continue purchasing Russian crude oil or natural gas 30 days after the law takes effect and rank among the five largest buyers could face additional US tariffs of up to 100%.

India is among the countries most exposed to the proposed measure. Russia accounted for 30.3% of India's crude oil imports in 2025-26, with purchases valued at $40.8 billion out of total crude imports of $134.7 billion.

The bill does not automatically impose a 100% tariff on India. The US Trade Representative would have discretion to set the additional duty at a rate above zero and up to 100%, depending on whether a country increases, reduces or stops purchases of Russian energy, GTRI said.

The additional tariffs would be over and above existing US duties, including tariffs imposed under Sections 301 and 232 as well as antidumping and countervailing duties.

The bill now returns to the House of Representatives, which is scheduled to reconvene on Aug. 31. The House can approve, amend or reject the Senate version. Any changes would require the two chambers to agree on identical text before the legislation can be sent to President Donald Trump.

The White House has indicated that Trump would sign the legislation, though passage in the House is not assured, GTRI said.

GTRI said China buys more Russian crude than India, but New Delhi could face greater pressure because the proposed legislation gives the US president wide discretion to determine country-specific tariffs.

“Discounted Russian oil has lowered India’s import bill, strengthened energy security and helped contain inflation,” GTRI founder Ajay Srivastava said.

Giving up Russian crude under pressure would impose real costs on the Indian economy, he said.

GTRI also pointed to Washington's earlier decision to impose an additional 25% Russia-related tariff on Indian goods in July 2025, which was withdrawn in February 2026.

At the same time, India has increased purchases of US energy. Imports of American crude rose to $9.1 billion in 2025-26 from $6.6 billion, while total energy purchases from the US reached $12.5 billion.

These included LNG worth $1.4 billion, LPG worth $896 million and petroleum coke worth $861 million.

“Washington therefore cannot credibly claim that India is shutting out American energy,” Srivastava said.

GTRI said the proposed sanctions reflect a broader shift in the US towards using trade restrictions as instruments of foreign policy, alongside reciprocal tariffs, Section 301 investigations, forced-labour measures and sector-specific duties.

“India shouldn’t allow tariff threats to determine its energy policy,” Srivastava said. “As long as Russian crude remains commercially attractive, India should continue buying it.”

Differences with Washington should instead be managed through negotiations without making unilateral concessions that increase India's energy costs and weaken its strategic autonomy, GTRI said.