India Faces Fresh Tariff Risk As US Senate Advances Russia Sanctions Bill With 100% Duty

The US Senate has passed a sweeping Russia sanctions bill that could put India and other major buyers of Russian oil under fresh tariff pressure if the legislation becomes law.

Passed on Friday, the bill would give US President Donald Trump the authority to impose tariffs of up to 100 per cent on goods imported from countries that continue to purchase Russian oil and gas. The legislation also targets Russian officials, oligarchs, financial institutions and the so-called “shadow fleet” used to circumvent restrictions on Moscow’s energy exports.

The bill now moves to the House of Representatives. However, a vote is unlikely before at least early September as Congress is currently on its summer recess.

Why India And China Are In Focus

India and China have emerged as major buyers of Russian crude since the Ukraine war disrupted Moscow’s traditional energy trade with Europe.

Supporters of the Senate bill argue that restricting Russia’s energy revenues is crucial to limiting President Vladimir Putin’s ability to finance the war in Ukraine.

The legislation would also give Trump the power to impose tariffs of up to 500 per cent on certain Russian imports, including oil and gas, while expanding Washington’s ability to target countries that continue purchasing Russian energy.

If enacted, the measures could create a fresh challenge for countries such as India that have significantly increased purchases of discounted Russian crude since 2022.

Bill Targets Putin, Russian Financial Network

The proposed sanctions would target senior Russian officials, including Putin, along with oligarchs, financial institutions and entities linked to Moscow’s energy trade.

The legislation was named after the late Senator Lindsey Graham, who spent more than a year building bipartisan support for the measure before his death on July 11.

Democratic Senator Jeanne Shaheen said the bill would increase pressure on Russia’s energy and financial sectors.

“Vladimir Putin only understands strength, and he only responds to pressure,” Shaheen said, arguing that the legislation could push Moscow towards negotiations.

“This legislation represents our best opportunity to finally bring Russia’s war machine to its knees and to force Putin to the negotiating table,” she added.

Russia Condemns The Legislation

Russia’s embassy in Washington criticised the Senate action, arguing that the proposed measures would ultimately hurt the US administration as well.

The legislation comes as Moscow faces growing economic pressure from Europe.

The European Union recently adopted its 21st sanctions package since Russia’s 2022 invasion of Ukraine, targeting financial networks, cryptocurrency companies and additional Russian officials.

The latest EU measures also sought to restrict Russia’s oil revenues, while providing limited exemptions for shipping companies involved in transporting Russian liquefied natural gas from the Arctic.

What Could It Mean For India?

The Senate vote does not immediately impose any new tariff on India. The bill must first clear the House before it can become law.

If enacted in its current form, however, the legislation could give the Trump administration a powerful new tool to pressure countries that continue importing Russian energy.

For India, which has relied heavily on Russian crude in recent years, the potential 100 per cent tariff on goods from Russian oil-buying countries could become a significant trade and diplomatic concern.