US House passes Russia sanctions bill, paves way for 100 per cent tariffs on India, China| How New Delhi will be impacted

PTC News Desk: India is facing a fresh tariff threat from the Donald Trump administration after the US House of Representatives passed a wide-ranging sanctions bill targeting Russia’s officials and key sectors of its economy.

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 could give President Donald Trump the power to impose tariffs of up to 100% on countries that continue to buy Russian energy, including India and China.

The bill was passed by the US Senate last month and received final approval in the House with a 262-159 vote. It will now go to President Trump for his signature. The legislation is being described as one of the most significant US efforts to support Ukraine since Trump returned to the White House.

What does bill propose ?

The legislation seeks to impose sanctions on Russian leaders and the country’s energy sector. It also targets Russia’s so-called “shadow fleet” of vessels allegedly used to bypass sanctions and transport Russian oil.

The bill would further authorise Trump to impose higher tariffs on China, India and other countries in an effort to reduce their dependence on Russian oil and gas. It also proposes additional sanctions against Iran.

"China and India, you better buy your oil and gas somewhere else," Democratic Senator Richard Blumenthal told reporters after the passage of the bill.

"Russia is getting that oil and gas sold by using the shadow fleet, which means that it's being bought at less than market rates, and it's going mostly to countries like China and India," Democratic Senator Jeanne Shaheen said.

"China is the top user of Russian oil and gas, and we need to send a very strong message, not just to Putin, but to China, and to anybody who is buying Russian oil and gas, that they are going to pay a price for that," Shaheen said.

Potential impact on India

Experts have warned that higher US tariffs could put pressure on India’s economic growth.

Aditi Nayar, Chief Economist at ICRA Ltd, told Fortune India that higher US tariffs and the uncertainty surrounding them could negatively affect India’s growth prospects.

However, the final impact on India will depend on whether the legislation becomes law and whether President Trump chooses to use the powers provided under it. The bill nevertheless adds another layer of uncertainty to trade relations between India and the US.

India-Russia ties have strengthened since the beginning of the Ukraine war, largely due to increased Russian oil exports to India. At the same time, India-US trade relations have faced greater pressure.