Trump could impose 100% tariffs on India:US Congress passes bill targeting countries buying oil from Russia with punitive trade measures

The US House of Representatives has passed a bill proposing sweeping sanctions on Russia and Iran, with 262 lawmakers voting in favour and 159 against. The bill will now go to the White House and will become law if President Donald Trump signs it. Named the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, the legislation proposes tough sanctions on Russia’s oil and defence sectors and expands sanctions targeting companies that do business with Iran. The bill does not automatically impose a 100% tariff on India. Instead, it would give the US president the authority to impose such tariffs on countries that continue to purchase Russian oil. The House had advanced the legislation to a final vote by 214-211 on Tuesday. Earlier, the US Senate passed the bill in August by 86-11. How could the bill affect India? If the legislation becomes law and India continues buying Russian oil, Indian exports to the US could face higher tariffs. This could make Indian products more expensive in the American market and potentially affect sectors such as textiles, gems and jewellery, engineering goods, leather, marine products and chemicals. Indian exporters could also face increased competition from countries such as Bangladesh, Vietnam, Mexico and China. If India reduces its purchases of Russian oil and shifts to supplies from other countries, its import costs could rise. Higher crude oil costs could, in turn, put pressure on domestic prices of petrol and diesel. Russia’s oil and defence sectors targeted The legislation proposes sanctions on Russian oil and defence-related businesses. It also targets vessels involved in transporting Russian oil while attempting to evade existing sanctions. This network of vessels is commonly referred to as Russia’s “shadow fleet.” The bill would also give the US president authority to impose tariffs of up to 500% on Russian goods entering the US, with this authority lasting for five years. Iran sanctions could continue until 2031 The legislation would extend the Iran Sanctions Act of 1996 until 2031. The law allows sanctions to be imposed on non-US companies involved in certain trade with Iran and was otherwise scheduled to expire this year. The proposed measures could also target Russia’s energy industry, financial institutions, defence infrastructure and businesspeople, as well as senior Russian officials. European countries could get exemptions The legislation also covers countries that purchase Russian natural gas. However, countries importing less than 15% of Russia’s total gas exports and taking steps to reduce their dependence could qualify for exemptions. A separate Senate proposal would exempt 15 European countries from the proposed 100% tariffs because they purchase relatively small amounts of Russian gas and are reducing their dependence on Russian energy. Democratic Senator Richard Blumenthal said the measure was not aimed at US European allies but at countries that continue to provide significant financial support to Russia through its oil trade.