India could face higher US tariffs after President Donald Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The law gives the US administration authority to impose tariffs of up to 100% on major buyers of Russian oil and gas, potentially including India.

The law is expected to add uncertainty for Indian exporters, particularly sectors that rely heavily on the US market. The textile and apparel industry has expressed concern that additional tariffs could increase pressure on MSME exporters and affect their competitiveness in the US.

Under the legislation, the US Trade Representative will identify countries and recommend tariff rates. The law also provides a national-interest waiver, which could give Washington flexibility in applying the measures.

India has reiterated its commitment to energy security and said it will continue sourcing energy based on market conditions and diversified supplies. New Delhi has also indicated that it will take steps to protect its trade and economic interests.

For Indian exporters, the actual impact will depend on the countries targeted, tariff rates, product coverage and implementation timeline announced by Washington.