The United States has introduced a draft bill proposing a crushing 100% tariff on countries that continue to buy Russian crude oil. India’s Ministry of External Affairs confirmed it is closely monitoring this highly aggressive legislative development.
100%
Proposed US tariff
⏳ Time Machine
How today’s news fits into the bigger picture
2018
CAATSA sanctions threat
The US passed CAATSA, threatening sanctions on India for buying Russian S-400 missile defense systems, which eventually led to a presidential waiver.
December 2022
G7 oil price cap
The G7 and EU implemented a $60-per-barrel price cap on Russian crude, which India largely bypassed by using non-Western tankers.
Mid-2024
Russian oil dominance
Russia solidified its position as India's largest crude supplier, accounting for over 40% of India's total imports during peak summer demand.
Today
India’s Ministry of External Affairs officially monitors a US draft bill proposing a 100% tariff on Russian oil buyers.
What happens next?
Indian diplomats will lobby US lawmakers for a strategic waiver by late 2026 to protect the bilateral trade relationship.
A new legislative proposal in the United States Congress threatens to upend India's delicate economic balancing act. The proposed bill aims to penalize any nation purchasing Russian oil by slapping a massive **100% import tariff** on all their goods entering the American market. For India, which has imported over **$40 billion** worth of discounted Russian crude annually since the Ukraine war began, this represents a severe geopolitical threat. India’s Ministry of External Affairs stated on Friday that it is closely monitoring the bill's progress in Washington. The US is India's largest trading partner, with bilateral trade reaching **$120 billion** in recent years. If passed, the law would force New Delhi to make a painful choice between cheap Siberian energy and its lucrative export pipeline to Western consumers, fundamentally restructuring global energy and trade flows.
💭 If you're wondering…
While India uses rupees and dirhams, the proposed US bill penalizes the physical purchase of the oil, regardless of the payment currency used.
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