100% Tariff Threat: Can India Keep Buying Russian Oil Without Paying the Price?

A new economic and diplomatic challenge has emerged for India after US President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 on September 18. The law gives the US administration authority to impose tariffs of up to 100% on imports from countries that meet specified conditions related to purchases of Russian oil and gas. India and China are among the major Russian-energy buyers potentially affected.

However, one important clarification is needed: India has not automatically been hit with a 100% tariff. The legislation authorises the maximum rate and gives the US president substantial discretion over which countries are targeted, what rate is applied and whether provisions are waived. The law is scheduled to take effect within 30 days of signing.

The issue matters because Russian crude has become an important part of India's oil supply. Reuters reported that Russian oil accounts for more than 40% of India's overall oil supplies, while India imports more than 80% of its crude requirements. Cutting purchases could therefore affect refinery costs and potentially put pressure on domestic fuel prices, depending on alternative supplies and global crude prices.

India has defended its need for secure, affordable and reliable energy, while warning that the US measures could affect bilateral relations and global energy markets. New Delhi has also said it will protect its trade and economic interests.

The central question is now not simply Russia or America. It is how India manages the competing demands of energy security, trade, diplomacy and global sanctions without creating additional economic pressure at home.