US Sanctions Bill Could Trigger 100% Tariffs on India

The legislation, which recently cleared a key procedural vote in the Senate by 86-12, is designed to increase economic pressure on Russia over its war in Ukraine. Besides targeting Russian officials with additional sanctions, the bill empowers the US president to levy steep tariffs on countries that continue buying Russian energy.

India is among the countries that could be affected, along with China, Slovakia, Hungary and Azerbaijan, as they continue to import Russian crude and other energy products despite Western efforts to reduce Moscow’s energy revenues.

If enacted, the bill would give President Donald Trump the authority—but not the obligation—to impose tariffs of up to 100 per cent on imports from these countries. It would also leave the decision to remove or waive those tariffs entirely at the president’s discretion, making the measure a powerful negotiating tool rather than an automatic penalty.

For India, the proposed legislation raises concerns because Russia has become one of its largest crude oil suppliers since the Ukraine war began. Indian refiners have significantly increased purchases of discounted Russian crude, helping keep domestic fuel costs in check. A 100 per cent US tariff on Indian exports could affect sectors such as engineering goods, pharmaceuticals, textiles, chemicals and auto components, potentially impacting bilateral trade if the powers are exercised.

Speaking at the White House, Trump suggested expanding the legislation further by including tariff provisions against Iran.

“It shouldn’t be necessary, to be honest. But if it’s necessary, I’d like them to add Iran as tariffs, not just as sanctions. I think it’s important. That’s what Lindsey wanted, because I heard that they have tariffs on Russia, but not on those five countries having to do with Iran. I’d like to see tariffs on Iran. It would make it much stronger,” Trump told reporters in the Oval Office.

Trump’s proposal could delay the bill as lawmakers may need to revise the legislation before it proceeds further in Congress.

Although the bill has bipartisan backing, it has not yet become law. Some Democrats have expressed concern over giving the president broad authority to impose tariffs, arguing that such powers could increase import costs and affect US consumers. These concerns could influence the bill’s progress through the remaining procedural stages in the Senate.

If approved by the Senate, the legislation will move to the House of Representatives, which is expected to reconvene in September. It must pass both chambers of Congress before reaching the president’s desk for final approval.

For now, the proposed 100 per cent tariffs remain a legislative possibility rather than an immediate trade measure. However, the bill has drawn close attention in New Delhi because of India’s continued reliance on Russian oil and the potential impact on India-US trade if the tariff provisions are eventually invoked.