Another round of tariffs on exports to the United States could become a reality with the US Senate passing a legislation empowering President Donald Trump to impose additional tariffs of up to 100% if India continues buying Russian crude oil.

The US Senate on early Saturday India time passed the bipartisan Lindsey O Graham Sanctioning Russia and Iran Act of 2026 by an 86-11 vote. Before it becomes a law, the legislation will have to clear the House of Representatives and receive the President’s signature.

The bill, however, does not directly impose tariffs. Instead, Section 113 would give the president discretionary authority to levy tariffs of up to 100% on imports from countries purchasing Russian oil or natural gas. The president would have the power to decide whether to impose the tariffs, which countries to target and the rate applicable to them.

Indian exporters, particularly in the engineering sector, have expressed concern over the proposed measure. The US is the largest market for India’s engineering goods. “If the bill becomes law, it might have significant impact on Indian goods exports. At present, however, it would be premature to discuss any possible impact of this legislation,” said Chairman of Engineering Export Promotion Council (EEPC) Pankaj Chadha.

The engineering goods exports to the US stayed positive in financial year 2025-26 despite punishing Trump tariffs, but any additional levy would dent the competitiveness of Indian shipments, he added.

“The White House supports the measure and has indicated that Trump would sign it. However, passage in the House isn’t certain. Some lawmakers are concerned about giving the president wider tariff powers and raising costs for American businesses and consumers,” said Founder of Global Trade Research Initiative Ajay Srivastava.

The bill’s sponsors have identified China, India, Slovakia, Hungary and Azerbaijan as the five largest buyers of Russian crude, he pointed out. The legislation would require the US Trade Representative (USTR) to identify and review the five largest buyers of Russian energy every 180 days.

The proposed law also provides for exemptions in certain circumstances. Countries importing less than 15% of their total energy from Russia and demonstrably reducing their dependence on Russian energy could qualify for an exemption. The tariff authority would remain in force for five years unless renewed by Congress.

“The stakes are high. Russia supplied 30.3% of India’s crude imports in 2025-26 — $40.8 billion of a total $134.7 billion. Discounted Russian oil has lowered India’s import bill, strengthened energy security and helped contain inflation. Giving it up under pressure would impose real costs on the Indian economy,” Srivastava said, adding: “India shouldn’t allow tariff threats to determine its energy policy.”