India is examining a new US law that gives President Donald Trump authority to impose tariffs of up to 100% on countries buying Russian oil and gas, Commerce and Industry Minister Piyush Goyal said on September 21.

Goyal said the government is studying the details of the legislation before deciding on its response. The law does not automatically impose a 100% tariff on India. It gives the US President authority to decide which countries could face additional tariffs and at what level.

The legislation, signed on September 18, is expected to take effect within 30 days. During this period, the US Trade Representative will identify potential target countries and recommend tariff rates. Countries could generally receive time to reduce purchases of Russian energy or negotiate with Washington.

India remains a major buyer of Russian crude and has repeatedly said that its energy sourcing decisions are guided by energy security and market conditions. The new US law adds uncertainty for Indian exporters as New Delhi and Washington continue discussions on bilateral trade.

The legislation also includes provisions for possible waivers under specified conditions, including where a waiver is considered to be in the US national interest. India is now assessing the potential trade and energy implications of the new measures.