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A US Russia sanctions bill passed by Congress has raised the prospect of tariffs of up to 100% on countries making major purchases of Russian energy, creating new trade and energy-security risks for India. The development was reported on September 18–19, 2026.
Reuters reported that the congressional measure would allow Washington to impose the tariffs on countries including India and China. The Indian Express separately reported that the bill empowers the White House to use tariffs against importers of Russian oil.
Reports differ on whether the measure had already received presidential assent by the time of publication. This article therefore describes the independently confirmed development: passage by the US Congress and the potential authority created by the legislation.
What the US Russia sanctions bill could do
The measure is designed to increase economic pressure on Russia by targeting countries that continue to buy large quantities of Russian oil or other energy products. It would provide the US administration with authority to impose tariffs of as much as 100%, rather than automatically applying the maximum rate in every case.
That distinction is important. The passage of the legislation does not by itself establish that a 100% tariff has been imposed on Indian goods. Any actual rate, timing, exemption or enforcement decision would require further US government action.
Reuters reported that Russian crude accounts for more than 40% of India’s oil supplies. India sharply increased discounted purchases after Russia’s invasion of Ukraine in 2022, arguing that affordable and reliable energy is essential for its large population and growing economy.
India warns about energy and trade consequences
New Delhi said it had warned Washington that the measure could damage bilateral relations and disrupt global energy markets. India reiterated that it would pursue energy security for its 1.4 billion people through diversified sources.
External Affairs Minister S. Jaishankar defended India’s right to secure energy supplies and warned of possible consequences for India-US relations if the bill were used against the country, according to The Indian Express.
The policy creates a difficult choice. Reducing Russian imports quickly could increase procurement costs and place upward pressure on domestic fuel prices or government finances. Continuing purchases could expose Indian exporters to additional US tariffs if Washington exercises the bill’s powers.
Trade negotiations face added uncertainty
The United States is one of India’s most important export markets. Reuters reported that the sanctions debate arrives while the two countries are still seeking progress on a delayed trade agreement.
Analysts cited by Reuters said the legislation could widen the trust gap between New Delhi and Washington and make last-stage trade concessions harder. India has also been pursuing agreements with other partners as it seeks to diversify commercial relationships.
The immediate facts to watch are whether the legislation formally becomes law, what implementing guidance follows, and whether India receives an exemption or a lower tariff treatment. Until those steps occur, claims that Indian exports already face a new 100% levy would be premature.
