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The Economic Times
The Economic Times

100% tariff danger for India nears as Russia Sanctions Bill advances in US House amid surprise vote twist

The fate of potential 100 per cent US tariffs on India, China and other major buyers of Russian oil and gas now rests with the US House of Representatives, which has advanced the Russia Sanctions Bill that would give Donald Trump authority to impose the steep duties on countries continuing to buy Russian energy.

The House is expected to hold a final vote on the legislation on Wednesday.

The Lindsey O Graham Sanctioning Russia and Iran Act of 2026 cleared a key procedural hurdle in the House on Tuesday evening after two Democratic lawmakers broke with their party to vote alongside Republicans.

Also read: US lawmaker submits amendment naming India in Russia sanctions act

The measure to advance the sanctions bill, along with a group of other legislations, passed by 214-211, catching House Democratic leadership off guard. The bill is now set for a final House vote.

Democratic Congressman Gregory Meeks, the ranking member of the House Foreign Affairs Committee, had opposed the legislation, arguing that it would give Trump broad authority to impose tariffs without sufficient guardrails.

The US Senate passed the bill on August 7 with an overwhelming 86-11 vote. The legislation targets Russia's leadership and energy sector and also seeks sanctions against vessels in the so-called “shadow fleet” that help Moscow circumvent restrictions on oil shipments.

The House action comes as pro-Ukraine groups have stepped up lobbying efforts on Capitol Hill. The Ukraine Action Summit, organised by the American Coalition for Ukraine, is underway in Washington as the groups push lawmakers to maintain support for Kyiv.

What is the Russia Sanctions Bill?

The legislation is aimed at tightening economic pressure on Russia over its war against Ukraine, with the US arguing that Moscow's crude oil revenues are helping fund the conflict.

A key provision would authorise Trump to impose tariffs of up to 100 per cent on countries that continue buying Russian oil and gas or facilitate sanctions evasion. A House amendment explicitly names India and China among the countries that could face the additional tariffs, along with Türkiye, the UAE, Azerbaijan, Hungary, Slovakia, Singapore, Kazakhstan and Kyrgyzstan.

The Senate version passed in August did not specifically name Russia's trading partners. Instead, it referred to the five largest importers of Russian oil and gas by volume. The House version has therefore brought India more explicitly into the tariff debate.

The legislation must clear the House before it can be sent to Trump for his signature. The House is due to begin an early recess on Thursday and is expected to return on November 9 after the US midterm elections.

Also read: Russia Sanctions Bill: India gets a breather as Trump’s 100% tariff weapon stalls in US House

India-US trade deal: Where negotiations stand

The development comes as India and the US continue to work towards formalising their trade agreement. Commerce Secretary Rajesh Agrawal has said the deal is “more or less” finalised, with the two sides working on a framework for preferential market access before signing it at an appropriate time.

“There are few things which both sides are discussing, but it will be signed at an appropriate time,” Agrawal said on the sidelines of the Global Fintech Fest 2026.

Agrawal said India and the US need to ensure preferential access to each other's markets under the agreement. India operates largely under most-favoured-nation tariffs, while the US is working with executive tariffs, requiring an architecture that would create tariff differentials and preferential market access for India, he said.

Businesses in both countries were already engaging strongly and were satisfied with the broad understanding reached between the two governments, Agrawal said

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