US tariffs against Russian oil buyers pass: What it means for China, India

The US Congress has passed a bill granting President Trump authority to impose significant sanctions and tariffs on buyers of Russian energy, primarily targeting China and India, Moscow's largest energy purchasers. This legislation, named the "Lindsey O Graham Sanctioning Russia Act of 2026," aims to cut off economic support for Russia's war in Ukraine. The bill allows for tariffs of up to 100 percent on exports from the top five purchasers of Russian energy and military equipment. China, importing about half of Russian crude, and India, importing 37 percent, are expected to be most affected. Both nations have expressed concerns, with India stating its determination to protect its trade interests and China opposing extraterritorial jurisdiction.

The US House of Representatives has passed legislation that could allow President Trump to impose up to 100% tariffs on countries purchasing Russian oil and gas. This move puts India, a major importer of discounted Russian crude since the Ukraine invasion, in a difficult position. India relies heavily on Russian oil, which accounted for over half of its imports in July and 30.3% of its total crude imports in fiscal 2026. While India aims to ensure energy security for its population, the potential tariffs threaten its access to the US market, a significant trade partner. India is monitoring the situation and has communicated its concerns about the implications for bilateral relations and international energy markets.