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India Faces Proposed US Tariff Over Russian Oil Imports; Opposition Targets Government

India Faces Proposed US Tariff Over Russian Oil Imports; Opposition Targets Government

Nisha Rai
July 16, 2026

A fresh proposal in the US Senate seeking to impose 100 per cent tariffs on countries purchasing Russian oil has triggered political debate in India, with the Congress demanding an explanation from Commerce Minister Piyush Goyal and accusing the Centre of allowing the country to face diplomatic pressure.

A bipartisan group of US senators , led by Republican Senator Lindsey Graham , has introduced legislation targeting five countries — India, China, Slovakia, Hungary and Azerbaijan — for continuing to buy Russian oil. The proposed bill exempts 15 European countries that still import Russian gas, arguing that their purchases are limited and that they are actively reducing dependence on Moscow.

Reacting sharply, Congress leader Pawan Khera said Goyal should clarify the government's position. He argued that the proposal comes not from political opponents of US President Donald Trump , but from Republican senators aligned with him.

Khera claimed India was being "humiliated" by facing the threat of punitive tariffs despite pursuing its own energy security interests. He questioned why India should require Washington's approval to buy oil from Russia.

The proposed legislation has not yet become law. It must be approved by both chambers of the US Congress and signed by the US President before taking effect. However, its introduction has intensified debate over the impact of geopolitical tensions on global trade.

A 100 per cent tariff generally means an importer must pay a tax equal to the full value of the imported product. For example, goods worth USD 100 would attract an additional USD 100 in import duty, effectively doubling the import cost before other taxes or charges. Such tariffs often make products significantly more expensive and can sharply reduce trade competitiveness.

If enacted, the bill would mark the first explicit use of US tariffs as a geopolitical tool authorised by Congress to penalise countries accused of helping finance another nation's war effort through energy purchases.

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