Indian exporters braced for renewed uncertainty in the US market on Wednesday as the House of Representatives prepared to vote on a Russia Sanctions Bill that could empower President Donald Trump to impose tariffs of up to 100% on countries continuing to buy Russian energy.
“We are concerned. Trade and industry are concerned about what happens after the Bill is passed because it would result in massive uncertainty,” Federation of Indian Export Organisations director general and CEO Ajay Sahai said. “Whether President Trump imposes those tariffs or uses them as a bargaining chip for negotiation, we have to see,” he said.
An exporter said the legislation would increase pressure on India to conclude the proposed bilateral trade agreement (BTA) with the US, but any deal should provide an exemption from such tariffs.
“The Bill is a blunt and dangerous attempt to pressurise India to sign BTA on one-sided terms. Washington should pursue diplomacy and stable energy markets, not threaten a strategic partner for protecting its legitimate economic interests,” founder of Global Trade Research Initiative Ajay Srivastava said. He argued that India purchases Russian crude primarily to secure affordable energy and that tariffs of up to 100% could hurt Indian exporters as well as American consumers.
The latest US move comes as New Delhi and Washington continue to work through their broader trade and tariff differences. For exporters, the prospect of presidential tariff action linked to Russian oil adds another layer of uncertainty to market access at a time when businesses are seeking greater clarity on the terms of the India-US BTA.
Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which has cleared the US Senate with bipartisan support, targets Russia’s energy and defence sectors and its sanctions-evasion networks. The House was scheduled to vote on the measure after clearing a 214-211 procedural vote late Wednesday.
For Indian exporters, the concern is less about an immediate 100% duty and more about the uncertainty created by the legislation. Passage would not automatically trigger a 100% tariff on Indian goods; it would give the US President authority to impose tariffs of up to that level, with the timing, scope and application dependent on subsequent administration action.
The legislation comes after Washington had already used tariffs against India over Russian oil purchases. In August 2025, the Trump administration imposed an additional 25% tariff on Indian imports, citing India’s continued purchases of Russian crude. The additional levy brought the prevailing tariff burden on Indian goods to 50% at the time. The separate Russian oil related duty was subsequently withdrawn in February 2026.
The stakes are significant given India’s dependence on Russian crude. Russia accounted for 30.3% of India’s crude oil imports in 2025-26, with purchases valued at about $40.8 billion out of total crude imports of $134.7 billion. Russia’s share rose above half of India’s crude imports in July 2026, GTRI said.