India faces potential U.S. tariffs over Russian oil imports

India faces potential trade repercussions from the United States following the enactment of the ‘Lindsey O. Graham Sanctioning Russia and Iran Act of 2026’. Signed by President Donald Trump, the law authorizes the president to impose tariffs of up to 100% on countries ranked among the five largest buyers of Russian crude oil or natural gas.

India is currently the second-largest importer of Russian crude, with imports recently accounting for approximately 55% of its total supply. Analysts suggest that India is unlikely to rapidly abandon Russian energy sources, as doing so could increase import costs and drive domestic inflation, especially given existing supply disruptions in the Middle East.

While the potential tariffs could strain bilateral trade negotiations between New Delhi and Washington, some analysts note that the U.S. may be hesitant to implement such measures if they risk significantly driving up global oil prices.