# India Faces U.S. Tariff Risk Despite Reliance on Russian Crude

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/25259
Published: 2026-09-29T09:50:51.000Z
Updated: 2026-09-29T09:50:51.000Z
Section: Regulation

> A new U.S. law allows tariffs of up to 100% on goods from major Russian-energy buyers, but no tariff has been confirmed for India.

India is unlikely to quickly abandon Russian crude despite a new U.S. law allowing tariffs of up to 100% on goods from major buyers of Russian energy, a move that could pressure India’s trade with the United States.

President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, or H.R. 5334, into law on Sept. 18. Section 113 requires tariff increases no later than 30 days after enactment for countries that rank among the five largest buyers of Russian crude oil or natural gas, or among the five countries facilitating sanctions evasion.

The provision authorizes duties of up to 100% rather than automatically imposing that rate. No tariff under the provision has been confirmed for India.

India imported a record 2.78 million barrels per day of Russian crude in July, accounting for more than half of its total crude imports. Another estimate placed the volume at about 2.8 million barrels per day, or roughly 55% of total imports.

Those supplies remain difficult to replace quickly. India’s Russian crude imports fell 26% in August from July’s level, based on provisional tanker data, but Russian barrels still represent a major part of the country’s supply mix. A rapid shift toward Middle Eastern, U.S. or other crude could increase competition for replacement cargoes, raising India’s import costs and adding to domestic inflation.

Russian crude became more attractive to Indian refiners after Russia’s invasion of Ukraine disrupted established energy trade and Western buyers reduced purchases from Moscow. Disruptions affecting Middle Eastern supply and shipping have also increased the value of diversified sourcing.

Senate Majority Leader John Thune said July 29 that the law gives the president “authority to levy tariffs of up to 100 percent against the largest purchasers of Russian energy, of which China is the largest.”

Sen. John Barrasso described China as Russia’s biggest customer and India as the next-largest, saying both countries “are going to be hit hard by this.”

The next step is the administration’s implementation of Section 113, including which countries it identifies under the law and what tariff rates it sets. The statute also allows exceptions and waivers under specified conditions.