US House passes bill allowing 100% tariffs on India, other countries for buying Russian oil

India said it will continue to ensure energy security for its people ‘through diversified sourcing and on the basis of evolving market dynamics’.

The United States House of Representatives on Wednesday passed a legislation allowing President Donald Trump to impose tariffs of up to 100% on India and other countries that purchase Russian oil and gas.

The bill was passed with 262 votes in favour and 159 against, and will now be sent to the president for his assent. The US Senate had passed the bill on August 7.

On Thursday, the Indian Ministry of External Affairs said that the government remains committed to ensuring energy security for its people. “It will continue to do so through diversified sourcing and on the basis of evolving market dynamics,” it said.

The foreign ministry also said that during discussions with US interlocutors, the potential implications of the matter on the bilateral relationship as well as the international energy market “have been very clearly articulated by the Indian side”.

“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests,” the external affairs ministry said. “Government will work closely with Indian trade and industry bodies to deal with the implications of these developments.”

According to the draft law, the tariffs could apply to the five countries that imported the largest volumes of Russian crude oil or natural gas in the 12 months before the law takes effect, if they knowingly continue buying Russian crude oil 30 days after the law is enacted.

Washington has for long claimed that the purchase of Russian energy has been fuelling Moscow’s war on Ukraine that began in February 2022.

The law is named after late legislator Lindsey Graham, who had spearheaded it before he died in July.

The tariffs could also target any of the five countries identified as helping Russia evade oil-related sanctions.

However, countries that have significantly reduced their imports of Russian natural gas, or whose Russian gas imports account for less than 15% of Russia’s gas exports, would be exempt.

The legislation comes as India has increased its purchases of Russian oil this year, while New Delhi and Washington negotiate a preliminary trade deal.

India’s import of Russian oil rose to an 11-month high in April, following the US-Israel war on Iran, The Hindu reported.

Before this, India had reduced its purchases of Russian oil, which fell to a 38-month low in December.

The Trump administration had imposed an additional 25% tariff on India over its purchase of Russian energy, taking the total tariff to 50%. The US Treasury later paused sanctions on Russian oil shipments that were already in transit before March 11, amid supply disruptions caused by the US-Iran conflict.

After an interim bilateral trade deal was agreed on February 2, US tariffs on Indian goods would have been reduced to 18% from a combined rate of 50%. The earlier rate of 50% had included a punitive levy of 25% imposed in August over India’s purchase of Russian oil.

However, negotiations on the final deal were postponed after the US Supreme Court on February 20 struck down global tariffs imposed by Trump, ruling that he had exceeded his authority.

On September 3, India’s Commerce Minister Piyush Goyal said that the final details of the trade deal with the US would be announced once Washington is able to give New Delhi a tariff advantage over competing countries. Goyal claimed that India had secured a good deal in “every sensitive sector”, such as agriculture, fisheries and micro, small and medium enterprises.

Written by Anamika Pathak. Edited by Neerad Pandharipande.