US Russia Sanctions Bill Raises Tariff Concerns for Indian Exporters

Indian exporters face fresh uncertainty over access to the US market after the US House passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026.

The bill gives US President Donald Trump authority to impose tariffs of up to 100% on countries that continue to buy Russian oil and gas. India could be affected because it remains a major buyer of Russian crude.

Exporters Concerned About Tariff Risk

The Federation of Indian Export Organisations (FIEO) has raised concerns about the possible impact on trade.

FIEO director general and CEO Ajay Sahai said exporters are concerned about the uncertainty created by the bill. He said the tariff power could also be used during trade negotiations.

The bill does not impose a 100% tariff automatically. It gives the US President the power to impose tariffs of up to 100%. The timing and scope would depend on further US administration action.

Impact on India-US Trade

The development comes as India and the US continue discussions on a proposed bilateral trade agreement.

Indian exporters are seeking greater clarity on future market access and tariff conditions. The new US legislation adds another factor to those ongoing trade discussions.

The US House passed the bill after the Senate had earlier approved it with bipartisan support. The legislation now awaits further action before it can take effect.

For Indian exporters, the key concern is the potential tariff risk and the uncertainty it could create for shipments to the US.