Dr S Jaishankar, Minister of External Affairs, has acknowledged the proposal’s potential implications for India’s energy security, as the United States considers a sweeping tariff bill targeting countries trading with Russia. The legislation, led by US Senator Lindsey Graham, could impose a 500% tariff on imports from countries, including India, that continue to buy Russian oil.
The bill, introduced by Republican Senator Lindsey Graham and backed by 84 co-sponsors, seeks to penalise nations that continue trading with Russia in oil, gas, uranium, and other key commodities. Graham claims the legislation is aimed at weakening President Vladimir Putin’s “war machine” by targeting countries that fund it indirectly. “If you are buying products from Russia and you are not helping Ukraine, there are 500% tariff on your products coming into the US,” he told a leading American news channel.
India and China currently account for nearly 70% of Russia’s oil exports. While the US and its allies have imposed sweeping sanctions on Moscow since the Ukraine war began, India has maintained its strategic energy ties with Russia, citing national interest and energy affordability. The bill could have wide-ranging implications for Indian exports to the US, its third-largest trade partner.
At a press briefing Thursday, Jaishankar addressed the bill directly, “Any development in the US Congress is of interest to us if it impacts our interests or could impact them.” He confirmed that the Indian Embassy has been in contact with Senator Graham and communicated concerns around energy security.
He added, “Our concerns and interests in energy security have been made conversant to him. So we will have to cross that bridge when we come to it – if we come to it.”
Graham also revealed that US President Donald Trump expressed support for moving the bill forward. “It’s time to move your bill,” Trump reportedly said while playing golf with the senator. The legislation is said to be potentially veto-proof due to its bipartisan support.
The bill has the potential impact of reshaping India and the US’s trade relations, if it is passed without making an exception for strategic partners like India, as India exports goods worth billions to the United States annually, and a 500% retaliatory tariff could disrupt key sectors including pharmaceuticals, textiles, and IT services.
