India Faces Trade Pressure as Trump Expands Sanctions

US President Donald Trump has signed into law a sweeping sanctions bill targeting Russia and Iran, granting his administration expanded authority to impose tariffs and restrictions on countries that continue to purchase Russian energy. The move has raised concerns in India, which remains a major buyer of Russian crude oil.
The legislation, known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, was signed on Friday after being passed by both chambers of Congress. The House approved the measure on September 16 with a 262-159 vote, following the Senate’s 86-11 approval in August.
For India, the most pressing issue lies in provisions that empower the US President to impose tariffs of up to 100 per cent on imports from countries meeting conditions linked to Russian oil and gas purchases. While the law does not automatically trigger such tariffs, it gives the Trump administration discretion to apply them.
Indian officials said they had repeatedly flagged concerns with Washington about the potential impact of the legislation on bilateral ties, trade, and the global energy market. New Delhi emphasized that its energy policy is guided by the need to ensure security for 1.4 billion people, relying on diversified sourcing and evolving market dynamics.
“India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and on the basis of evolving market dynamics,” the government said in a statement.
According to the White House, the new law expands sanctions against Russia, targeting officials, financial institutions, the energy sector, and vessels linked to the transport of Russian oil. It also extends existing sanctions against Iran. The legislation is intended to increase economic pressure on Moscow over the war in Ukraine while reinforcing restrictions on Tehran.
For India, however, the most consequential aspect is the potential use of tariff powers against countries that continue to buy Russian energy. The government has pledged to take “all necessary measures” to protect India’s trade and economic interests and is expected to closely monitor Washington’s next steps.
The signing of the law marks a sensitive juncture in India-US relations, with Russian oil purchases emerging as a particularly contentious issue. For New Delhi, the challenge remains balancing its energy security needs with the risks of expanded US sanctions.