Will India withstand US pressure during trade deal talks? Trump Plans to Sign Russia Sanctions Bill | Today’s news
US President Donald Trump plans to sign into law the Russia-Iran Sanctions Act, which gives the president the power to impose tariffs of up to 100 percent on major Russian energy importers, including India.
“The President is planning to sign the bill,” a White House official told PTI when asked about the President’s signing of the bill. The statement came a day after the US House of Representatives passed the bill.
What is the Russia-Iran Sanctions Act?
Lindsey O. Graham Russia Sanctions Act of 2026 was introduced in the US Senate on September 16.
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The Russia-Iran Sanctions Act allows the US president to impose up to 100% tariffs on countries that continue to import Russian energy. As one of the largest importers of Russian oil, this has a significant impact on India.
India is concerned because it is heavily dependent on Russian oil imports, and potential tariffs could increase its import costs and undermine its energy security and economic interests.
The US tariffs could complicate trade talks by putting pressure on India to limit purchases of Russian oil, which could lead to concessions in ongoing bilateral trade talks.
India is determined to protect its trade and economic interests and plans to work closely with industry bodies to mitigate the impact of these tariffs while continuing to source energy from various countries.
Experts suggest that India should not bow to US pressure and should continue to buy Russian oil as long as it is commercially viable, while working to diversify its energy sources.
The Russia-Iran Sanctions Act seeks to impose sanctions on Russia’s leadership and energy sector — as well as collaborators in Moscow’s defense industry and its so-called shadow fleet.
It proposed “increasing the tariff rate up to 100% ad valorem on all goods imported into the US from a country that was among the top five importers of oil or natural gas of Russian origin, if that country knowingly purchases new products after the law is enacted.”
However, it states that sanctions and other measures under this title do not apply to “conducting or facilitating trade for the provision of agricultural commodities, food, medicine, medical equipment, humanitarian aid or for humanitarian purposes”.
The bill also gives the President the power to waive the application of any sanction provision against a foreign person, any restriction against a person, or any obligation under the title. It also mentions certain conditions and requirements before exercising this power.
The bill gives the White House discretion on a case-by-case basis, rather than a uniform application of all sanctions.
Why is this important for India?
India is among the largest importers of oil from Russia. According to the June 2026 analysis of Russian fossil fuel exports and sanctions by the Center for Energy and Clean Air Research (CREA), India was the second largest buyer of Russian fossil fuels in June 2026, importing a total of €5.5 billion of Russian hydrocarbons.
In addition, trade and customs negotiations between India and the US are ongoing and an agreement is yet to be finalized.
A report by the Global Trade Research Initiative (GTRI) argued that Washington could use the prospect of tariffs to pressure New Delhi to reduce purchases of Russian oil and make concessions in a bilateral trade deal.
According to GTRI, the tariff threat assumes significance given India’s heavy dependence on imported oil. India imports more than 88 percent of its oil requirements, news agency ANI reported.
GTRI said India’s raw material sourcing pattern has changed dramatically in recent years. By 2022, the Gulf countries accounted for more than 55 percent of India’s oil supplies, while Russia’s share was less than 15 percent.
“India should not allow US threats to dictate its energy policy,” the report said, adding that cheaper Russian oil has helped the country reduce its import bill, boost energy security and curb inflation.
“India should continue to buy Russian oil as long as it remains commercially competitive and should deal firmly with Washington without making unilateral trade concessions,” GTRI said.
However, the report said the real impact on Indian exports can be assessed only after the US announces the tariff rates, product coverage and implementation schedule.
Meanwhile, experts told the Economic Times that the impact of potential new tariffs on Indian exports under the US Lindsey O Graham Act sanctioning Russia and Iran can only be assessed after Washington announces the actual charges, product coverage and implementation schedule.
What did India say?
India has reacted strongly to the passage of the Russia Sanctions Act of 2026 in the US Congress, saying that the Indian side has “clearly expressed its determination to take all necessary measures to protect its trade and economic interests”.
The Ministry of External Affairs warned that the move carries potential consequences for relations between Delhi and Washington as well as for the global energy market.
The MEA said: “This issue has been discussed at a high level with various US partners in recent months. Its potential implications not only for bilateral relations but also for the international energy market have been very clearly articulated by the Indian side.”
“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests. The government will work closely with Indian trade and industry authorities to deal with the implications of these developments,” the ministry said in a statement.
