Now Reading: US Senate bill allows 100% tariff on Indian goods over Russian oil
-
01
US Senate bill allows 100% tariff on Indian goods over Russian oil
The US Senate on Friday passed the Graham bill, allowing President Trump to impose tariffs of up to 100% on the top five buyers of Russian oil or gas, including India and…
The Story in Brief
The US Senate on Friday passed the Graham bill, allowing President Trump to impose tariffs of up to 100% on the top five buyers of Russian oil or gas, including India and China. The bill, which passed 86-11, targets nations helping Russia evade energy sanctions and also goes after Russian banks, officials, and the shadow fleet of tankers.
The legislation now heads to the House. Think tank GTRI has warned the move could subject Indian exports to crippling tariffs. However, India has already survived a similar episode: Washington removed a 25% tariff in February 2026 after India agreed to stop buying Russian crude as part of a trade deal that now appears stalled. Kotak Securities analyst Anindya Banerjee noted the Russian crude discount has fallen to just $2-3 a barrel, limiting the financial impact on India.
The Indian Opinion
The US Senate bill threatens 100% tariffs on Indian exports if New Delhi keeps buying Russian crude. But the noise around it ignores two facts. First, the discount on Russian oil has shrunk to just $2-3 a barrel, worth only $2-3 billion a year against India's $150 billion import bill. Second, the same administration removed a similar tariff in February after India agreed to stop Russian purchases. So is this a real stick or just a negotiating prop? Watch whether the House passes it and what waiver terms emerge. That will tell us if Washington is serious or posturing.
Sources (3): economictimes.indiatimes.com, ndtvprofit.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
