India is closely monitoring developments surrounding a new U.S. sanctions law after the U.S. House of Representatives approved legislation that gives President Donald Trump the authority to impose tariffs of up to 100% on countries continuing to purchase Russian oil and gas.
The Ministry of External Affairs (MEA) said on Thursday that India had taken note of the passage of the Sanctioning Russia and Iran Act and was monitoring the next steps. The legislation now awaits further action by the U.S. President.
US House Approves Russia and Iran Sanctions Bill
The U.S. House passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by a 262-159 vote on September 16. The Senate had previously approved the legislation by an 86-11 vote in August.
The bill expands sanctions targeting Russia and Iran and provides the U.S. President with authority to impose tariffs of up to 100% on major buyers of Russian energy. India and China are among the countries potentially affected because of their purchases of Russian crude.
However, the legislation does not automatically impose a 100% tariff on Indian exports. Any such tariff would depend on whether and how the U.S. administration exercises the authority provided by the law.
MEA Highlights India’s Energy Security Priorities
The MEA said India remains committed to maintaining energy security for its population and will continue to rely on diversified sources based on changing market conditions.
The ministry also said the issue had been discussed with various U.S. interlocutors at senior levels in recent months. India has communicated its concerns about the possible consequences for bilateral trade relations as well as international energy markets.
The government has also indicated that it will work with Indian trade and industry bodies to assess and manage the implications of the U.S. legislation.
Potential Impact on India-US Trade
The development comes as India and the United States continue discussions on their broader trade relationship. If additional tariffs were eventually imposed, Indian exporters and businesses with exposure to the U.S. market could face changes in their trading environment.
For companies involved in international trade, understanding changing tariff rules, maintaining accurate records and using reliable business setup in dubai and cross-border compliance support can become increasingly important as global trade regulations evolve.
What Happens Next?
The immediate next step is the U.S. President's decision on the legislation and any subsequent action under the tariff provisions. Until such measures are actually invoked, the potential 100% tariff should not be treated as an existing tariff on Indian exports.
India has said it will continue monitoring developments while working to protect its trade and economic interests.
Conclusion
The passage of the U.S. sanctions bill has created a new area of uncertainty for India because of its potential implications for Russian energy purchases and India-US trade. The MEA has indicated that New Delhi is monitoring the situation and has already raised its concerns with U.S. officials.