The U.S. Senate has overwhelmingly approved legislation that could expose Indian exports to additional tariffs of up to 100% if India continues buying Russian crude oil. The Senate passed the bipartisan Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on August 7 by an 86-11 vote.
The bill now returns to the House of Representatives. The Senate used H.R. 5334, an earlier House bill, to carry the sanctions package. When the House reconvenes on Aug. 31, it can approve, amend or reject the Senate version. If it makes changes, the two chambers must agree on identical text before the bill can go to President Trump.
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.
The legislation is named after the late Republican Sen. Lindsey Graham of South Carolina, who strongly supported tougher sanctions on Russia. His sister and Senate successor, Darline Graham, helped advance the bill.
How the tariffs would work
The bill doesn’t automatically impose a 100% tariff on India. Section 113 directs the president to impose additional tariffs of up to 100% on goods from countries that continue buying Russian crude oil or natural gas 30 days after the law takes effect and rank among the five largest buyers.
The bill’s sponsors have identified China, India, Slovakia, Hungary and Azerbaijan as the five largest buyers of Russian crude.
These tariffs would be added to existing U.S. duties, including tariffs imposed under Sections 301 and 232, as well as antidumping and countervailing duties.
The U.S. Trade Representative could raise or lower the tariff - within a range above zero and up to 100% - depending on whether a country increases, reduces or stops its purchases of Russian energy.
What are the ways for India
Commenting on the development, Delhi based think tank GTRI said, "China buys more Russian crude than India, but India may face greater U.S. pressure. The bill gives President Trump wide discretion to set country-specific tariffs. Washington has previously penalised India while sparing China: in July 2025, it imposed an additional 25% Russia-related tariff on Indian goods, withdrawing it only in February 2026."
The stakes are high. Russia supplied 30.3% of India’s crude imports in FY2026 - $40.8 billion out 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.
India is also buying substantially more energy from the U.S. American crude imports rose from $6.6 billion to $9.1 billion in FY2026, while total U.S. energy purchases reached $12.5 billion. This included LNG worth $1.4 billion, LPG worth $896 million and petroleum coke worth $861 million. Washington therefore cannot credibly claim that India is shutting out American energy.
The larger concern is America’s growing use of trade restrictions to enforce foreign-policy goals. Reciprocal tariffs, Section 301 investigations, forced-labour measures, sectoral duties and now Russia-related sanctions have turned tariffs into instruments of strategic pressure.
"India shouldn’t allow tariff threats to determine its energy policy. As long as Russian crude remains commercially attractive, India should continue buying it. Differences with Washington must be managed through firm negotiation—not extending unilateral concessions that raise India’s energy costs and weaken its strategic autonomy," GTRI said.