Up to 100% Tariff Threatens India's Russian Oil Purchases

The United States House of Representatives approved on Wednesday a bill that grants the president broad power to impose sanctions and tariffs of up to 100% on countries that buy oil and gas from Russia. The measure places India, a major buyer of Russian crude, under strong commercial pressure.

Importance of Russian Oil for India

Between December 2022 and August 2026, India accounted for 37% of Russian oil exports, according to the CREA think tank. In the fiscal year 2026, Russia supplied 30.3% of India's crude imports, totaling US$ 40.8 billion out of a volume of US$ 134.7 billion.

Impact of the American Tariff Proposal

The legislative text allows the president to reduce the 180-day period for countries to cut Russian imports or negotiate with Washington. If India does not reduce its purchases, it could face tariffs of up to 100% on its exports to the US, affecting sectors such as electronics, pharmaceuticals, machinery, and chemicals.

Challenges to Replacing Russian Oil

Experts point out that replacing Russian crude on a large scale would require higher costs for purchase, freight, and insurance, in addition to longer routes. The replacement could raise domestic fuel prices and pressure the margins of Indian refineries.

India's Official Stance

In a statement, India affirmed that it is “monitoring developments” and remains firmly committed to the energy security of its population. The country emphasized that purchases of Russian oil aim to ensure accessible energy for 1.4 billion people, not to finance the war.

Prospects for Bilateral Trade

Bilateral trade between India and the US moved around US$ 104 billion in 2025, totaling approximately US$ 240 billion in goods and services. The threat of high tariffs creates a complex calculation for New Delhi, which needs to balance the savings obtained from Russian oil against the risk of losing access to the American market.

With information from BBC.