US House Vote Raises Tariff Risks for India Over Russian Oil
India: India faces the prospect of tariffs of up to 100% on countries purchasing Russian oil and gas after the US House of Representatives passed legislation giving President Donald Trump broader powers to impose sanctions and tariffs on such countries. The legislation is expected to go to Trump for signature. India and China are among the countries most exposed, as both are major buyers of Russian crude. Russia accounted for 30.3% of India’s crude imports in fiscal 2026, worth USD 40.8 billion out of a total crude import bill of USD 134.7 billion. In July, Russian crude represented more than half of India’s crude imports, compared with 10.8% from the UAE, 9.6% from Saudi Arabia, 6.3% from Venezuela, 5.5% from Brazil, 5.3% from Oman and 2.9% from the US.
The economics of Russian crude have also changed, with discounts narrowing while competition for Russian supplies and shipping, insurance and sanctions-related risks have increased. India has said it is monitoring developments and remains committed to ensuring energy security. Alternative crude supplies are available, but replacing Russian volumes at scale could increase crude, freight and insurance costs and place additional pressure on global oil markets. The proposed tariffs would apply to Indian exports to the US rather than Russian crude entering India, with potential effects on Indian exporters, the rupee, refinery margins and the trade balance.
Source: BBC
