-Abhishek Vij
US President Donald Trump never tires of calling Prime Minister Narendra Modi his old friend. Despite this, India has been facing threats from Trump to increase tariffs on petrol purchased from Russia. Going further, the US Congress has now passed a new law giving Trump the power to impose 100% tariffs on countries buying oil from Russia. In addition to India, the US also has similar complaints against China, Slovakia, Hungary, and Azerbaijan. The US Congress has empowered Trump to impose 100% tariffs on these five countries.
Whenever Trump signs the relevant order, these tariffs will come into effect, severely impacting our exports to the US. The US Congress has cleared the way for 100% tariffs by passing the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. This legislation passed the US House of Representatives by a vote of 262159, after passing the Senate by a vote of 86-11 last month.
Whether Trump will sign it soon depends on the pressure of the US midterm elections in November. If Trump feels that by imposing these tariffs he can appease America’s conservative voters and ensure his victory, he will not delay signing the tariff order. It is being said that the recent MDR imposed on UPI payments in India was also imposed to appease the US, but this bill clearly shows that the US is not refraining from taking advantage of its superior status in foreign trade. India is a sovereign nation. India is completely free to choose with whom it trades, and what it buys from whom it buys. These “arm-twisting” actions by the US are simply petty. India’s response is that it is closely monitoring America’s next move.
We must ensure uninterrupted energy supply for our 1.4 billion people. We will purchase energy from wherever we choose. We will continue to source energy from various sources and make decisions based on market conditions. Because India, along with China, is a major buyer of Russia’s oil and gas, the US argues that this increases Russia’s economic power and that it is spreading violence around the world by continuing the war with Ukraine. One might ask, what is America doing? It is itself spreading economic chaos around the world by continuing its war with Iran, yet the point here is, “The powerful are not to blame.” India has clearly stated that it will address the situation and take all necessary steps to protect its trade. Even before this, the US has repeatedly threatened India with such threats.
This had some impact, leading to a reduction in our oil purchases from Russia. Later, with the direct and indirect consent of the United States, India significantly increased its purchases from Russia. But now the United States is threatening to increase tariffs. In response, India says it will continue to purchase oil and gas from various sources as per its needs. India is carefully comparing the changing global market and the potential impact of this US law. If the US implements this law, it will only discourage one of its major customers.