ISLAMABAD: The United States is moving toward tougher measures against countries that purchase Russian energy, a move that could expose India to tariffs of up to 100% on its goods and put additional pressure on a major US-India trade relationship.
The US Congress has introduced legislation targeting major buyers of Russian energy, with India among the countries that could be affected.
The US Senate passed the bill by an 86-11 vote, and on Tuesday the measure cleared an important procedural stage in the House of Representatives.
The proposed measures come as Washington increases pressure on countries that continue to purchase Russian oil during the war in Ukraine. The United States says purchases of Russian oil help sustain Moscow’s revenues to keep the Ukrainian war going.
India has maintained a strategic partnership with the United States while continuing to purchase large volumes of Russian oil. That balancing policy has increasingly become a source of tension between New Delhi and Washington.
President Donald Trump has said that India is helping fuel Russia's “war machine” through its purchases of Russian oil. India, meanwhile, has continued buying oil from Russia even as it tried to maintain economic and strategic ties with the US.
The potential tariffs could have significant consequences for Indian exporters. India exports over $100 billion worth of merchandise to the US annually, with industries including textiles, gems and jewelry, machinery and steel among those that could face pressure from higher tariffs.
According to an Indian government estimate, about $47.2 billion in exports were already within the scope of earlier additional US tariffs. The proposed 100% tariff could significantly increase the pressure on Indian exporters.
For New Delhi, the issue now extends beyond energy policy to its broader trade relationship with the United States, as the US Congress considers measures that could substantially increase costs for Indian exports.