Trump warns countries buying Russian oil, India and China face threat of 100% tariff
A US bill nearing final approval would let President Trump impose a 100% tariff on countries buying Russian oil and gas, hitting India and China hardest.
A major bill in the US Congress has reached its final stage of approval, setting off movement in oil markets worldwide. If the bill becomes law, US President Donald Trump will get sweeping powers to impose a tariff of up to 100% on countries buying crude oil and natural gas from Russia. Large countries such as India and China could be hit the hardest. If this happens, it will directly affect the common man as well, with petrol and diesel likely to become costlier, along with the prices of several other goods.
The bill has been named the "Lindsey O. Graham Sanctioning Russia and Iran Act of 2026". It was passed by the US House of Representatives by a vote of 214 to 211. Earlier, in August, the Senate had also approved it with an overwhelming majority of 86-11. Only the president's signature remains, after which the bill will become law.
The main aim behind the law is to break Russia's economic backbone. The idea is to completely cut off the money Russia earns from the energy sector so that it cannot use more funds for the war in Ukraine. The five countries that buy the most oil and gas from Russia will be hit the hardest -- India, China, Azerbaijan, Hungary and Slovakia.
India has clearly stated its position on this threat. Ministry of External Affairs spokesperson Randhir Jaiswal said that India buys oil from Russia based on its needs, national interest and global market prices. India and Russia have a longstanding and close relationship in the energy sector. The two countries have also been working together on civil nuclear energy projects for a long time, and India wants this partnership to continue.
This is a serious issue for India because the country imports 88% of its crude oil requirement. Of this, more than 35% comes from Russia alone, since Russia supplies oil to India at cheaper rates. India is always looking for cheaper energy options to meet rising demand while also balancing its foreign relations.
If the US imposes a 100% tariff, the impact will not be limited to crude oil alone. It could also badly affect India's exports to the US. The US could raise tariffs on many Indian goods. Electronics -- especially smartphones -- pharmaceuticals, textiles, jewellery and gemstones, and auto parts exports could be hit the hardest.
