US may slap 100% tariff on India over Russian oil purchases; bipartisan bill tabled in Senate, five countries in the crosshairs
New sanctions bill targets nations buying Russian oil and gas, with India, China, Slovakia, Hungary and Azerbaijan facing steepest penalties; Trump to get waiver powers
NewsArc Bureau | Washington DC
The United States has moved to tighten the screws on countries continuing to buy oil from Russia, with a revised sanctions bill introduced in the US Senate proposing tariffs of up to 100% on nations importing Russian crude and gas. The bipartisan legislation, backed by both Republican and Democratic lawmakers, names India, China, Slovakia, Hungary and Azerbaijan as the primary targets.
WHAT THE BILL PROPOSES
The bill seeks sanctions not just on countries but also on Russian officials, the so-called “shadow fleet” of tankers, Russia’s central bank and state-run energy projects. The goal, lawmakers say, is to choke off the oil revenue funding Moscow’s war effort. An earlier draft of the bill had proposed a far steeper 500% tariff, which was later scaled down to 100%.
If passed, it would mark the first time Washington has imposed tariffs on a country solely for boosting Russia’s earnings through oil purchases.
INDIA’S RUSSIAN OIL DEPENDENCE
India bought a record 2.61 million barrels of crude oil per day from Russia in June 2026, accounting for 52.4% of the country’s total oil imports — meaning more than one in every two barrels imported by India last month came from Russia. Russia has remained India’s largest oil supplier, with imports rising nearly 39% in June compared to May.
EUROPE GETS SOME BREATHING ROOM
China, France, Japan, Hungary and Belgium — all buyers of Russian natural gas — also fall within the bill’s scope. However, countries importing less than 15% of Russia’s total gas exports and actively reducing their dependence may be granted exemptions. Fifteen European nations have reportedly been given relief from the proposed 100% tariff on these grounds.
Democratic Senator Richard Blumenthal said the bill is not aimed at European allies, but squarely at countries still providing the biggest economic lifeline to Russia’s oil trade. The bill also proposes sanctions on Russia’s energy sector, financial institutions, defence-industrial infrastructure, businessmen, and President Vladimir Putin himself.
BIPARTISAN BACKING BOOSTS PASSAGE CHANCES
The bill enjoys support from both parties in the Senate — a rarity that significantly improves its chances of clearing Congress. It still requires approval from both the Senate and the House of Representatives before it can be signed into law by the President.
TRUMP TO GET WAIVER AUTHORITY
Under the revised bill, President Trump would be granted authority to waive the sanctions or tariffs if he determines doing so serves US national interest. The legislation was originally introduced in April 2025 by Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal. Following Graham’s death on 11 July, Trump said advancing the bill had been a priority for Graham and that it is now being pushed forward in his memory. So far, 26 senators have extended their support to the bill, with more expected to follow.
WHY A BILL NOW, NOT A DIRECT NOTIFICATION
Previously, President Trump imposed tariffs directly by declaring a national emergency under the International Emergency Economic Powers Act (IEEPA), 1977. However, on 20 February 2026, the US Supreme Court ruled against this practice, holding that IEEPA does not empower the President to impose tariffs — since tariffs are a form of import duty, and under Article 1 of the US Constitution, that power rests primarily with Congress. This is why a separate bill is now being routed through Congress to impose the proposed 100% secondary tariff, giving the President clear legal authority that would be harder to challenge in court or reverse in future.
THREE MAJOR IMPACTS ON INDIA IF THE TARIFF HITS
Exports to double in cost: The US is India’s largest export market, with India shipping roughly ₹6.5 lakh crore worth of goods annually. A 100% tariff would double the cost of Indian goods in the US, effectively halting sales.
Losses ten times the savings: India saves an estimated ₹60,000 crore annually by buying discounted Russian oil, but the losses from losing the US market would be roughly ten times that saving.
Jobs at risk, rupee under pressure: A 100% tariff would disrupt roughly ₹2.1 lakh crore worth of textile, diamond and pharmaceutical exports to the US, affecting an estimated 15–20 lakh workers in these industries. A dollar shortage from falling exports could also weaken the rupee against the US dollar.
