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CommoditiesMediumUpdated•Originally published 21 September 2026•Updated 22 September 2026•
2 min read

Trump Sanctions Law Could Hit India With Tariffs of Up to 100% Over Russian Oil

Key Facts

1Trump signed H.R. 5334 on September 18, 2026, authorizing tariffs of up to 100% on goods from covered countries.
2Section 113's test includes the 5 largest importers of Russian crude or gas during the preceding 12 months when they make new purchases after 30 days.
3India imported 2.8 million barrels a day of Russian crude in July 2026, or 55.5% of its total intake, worth about €5.5 billion and up 2.1% month on month.

U.S. President Donald Trump signed H.R. 5334, the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, on September 18, 2026. The law expands Russia-related sanctions and authorizes tariffs of up to 100% on all goods the United States imports from a country that meets its Russian-energy purchase tests.

Section 113 defines a covered country as one of the 5 largest importers by volume of Russian crude oil or natural gas during the preceding 12 months that makes a new Russian purchase on or after 30 days from enactment. It also covers the top 5 countries facilitating Russian oil-sanctions evasion. The 100% rate is therefore a statutory ceiling, not an automatic tariff on India.

India appears exposed to the test because of the scale of its purchases. Its Russian crude imports reached a record 2.8 million barrels a day in July 2026, equal to 55.5% of its total crude intake. Russian crude purchases were worth about €5.5 billion that month, up 2.1% from June, according to CREA and reports based on shipping data.

The risk reaches Indian refiners indirectly: a tariff would raise the cost of Indian exports entering the U.S. market rather than tax Russian barrels themselves. That could force refiners and policymakers to weigh discounted crude against broader trade losses. The oil-price effect depends on whether India reduces its purchases or the Russian barrels are redirected to other buyers.