US tariff on India import trade war cargo shipping container
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India is in talks with Washington on the US Senate Bill proposing up to 100 per cent tariffs on countries buying Russian oil as its exports could be potentially hit, and the discussions so far have been “reassuring”, sources said.However, uncertainty remains as the measure is a legislative issue and its final impact on India will depend on how the legislation progresses and is implemented, the sources added.“The Bill is a concern as India could be affected if it becomes a law but our talks with the US have been reassuring. Things seem positive but since it is in the legislative process, no one can say with certainty what will happen,” a source tracking the matter told businesslineThe assurances from Washington assume significance as India has continued to purchase Russian crude despite mounting pressure from the US.The US Senate had recently overwhelmingly passed legislation that would empower President Donald Trump to impose tariffs of up to 100 per cent on imports from top buyers of Russian oil and gas. India, the second-largest buyer of Russian crude after China, could potentially be among the countries affected by the proposed measure.The sanctions Bill, officially the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, will not result in immediate penalty. The bill still has to clear the US House of Representatives and the final decision on which country to penalise could rest with US President Donald Trump.Crude purchasesNew Delhi is unlikely to check its crude oil purchases from Russia, its largest oil supplier, because of its long-standing economic (especially defence and oil purchase) and diplomatic ties with Moscow, according to various sources in the government and the industry. In July 2026, Russia supplied an estimated $7.3 billion of India’s total crude imports of $14 billion—equivalent to approximately 52 per cent, according to estimates made by research body Global Trade and Research Initiative (GTRI).Meanwhile, India is also seeking protection against any further tariff action as part of the bilateral trade agreement (BTA) being negotiated with the US. The framework agreed by the two sides in February contains a provision that there would be no further increase in tariffs once the pact is sealed, sources said.Such a provision, if retained in the final agreement, would provide India with greater certainty and protect its exports from subsequent tariff hikes by Washington after the BTA comes into force.The framework for an interim trade deal was announced on February 7, with the two countries agreeing to work towards an interim trade agreement and substantially expand bilateral trade. Negotiations have since continued, although they face delays following the US Supreme Court verdict invalidating the reciprocal tariffs imposed by the Trump regime.The on-going Section 301 investigations by the US Trade Representative’s office against a number of countries, including India, also contributed to the delay.Published on August 13, 2026
