US Tariff Threat Looms Over India as Russia Sanctions Bill Clears Congress

The bill will now go to President Donald Trump. If he signs it, the legislation will become law. India and China were specifically identified during the House debate as major buyers that could potentially be affected by the provision.

India has responded to the tariff threat. The Ministry of External Affairs said it had taken note of the passage in the US Congress of the Act imposing sanctions on Russia and Iran and was closely monitoring further developments.

The Ministry of External Affairs said India had already made its position clear several times and remained fully committed to ensuring the energy security of its 1.4 billion people. India would continue to source energy from different sources based on changing market conditions.

The Government of India has noted the passage of the Sanctioning Russia and Iran Act in the US Congress. We are monitoring further developments on this matter, says Ministry of External Affairs

MEA: As stated on several earlier occasions, India remains firmly committed to… pic.twitter.com/khN7rAiuLF

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— ANI (@ANI) September 17, 2026

The ministry also said that the issue had been discussed at a high level between Indian and US officials over the past few months. India had made it clear that the impact of such tariffs could extend beyond India-US relations to international energy markets.

India also conveyed that it remained committed to taking all necessary steps to protect its trade and economic interests. The government will work with Indian trade and industry organisations to deal with the impact of these developments.

The legislation, known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, targets Russia's energy and defence sectors and provides for measures against countries continuing to purchase Russian oil and gas. The provision authorising tariffs of up to 100% does not itself impose such a tariff on India but gives President Trump the authority to levy the duties under the legislation.

The passage of the bill therefore puts India under the possibility of significant US trade action while New Delhi continues to emphasise energy security, diversified sourcing and the protection of its trade and economic interests.