Proposed U.S. Bill Targets Buyers of Russian Oil: 100% Tariff Plan Could Put India and China Under Pressure
A bipartisan proposal in the U.S. Senate has intensified trade and geopolitical tensions by seeking to impose tariffs of up to 100% on imports from countries that continue purchasing large volumes of Russian oil. India and China, currently among the world’s biggest buyers of discounted Russian crude, are widely viewed as the principal targets of the legislation, which aims to reduce Moscow’s energy revenues and increase pressure on Russia over the Ukraine war.
The proposed legislation represents a significant revision of an earlier sanctions package that had contemplated tariffs as high as 500%. Lawmakers reduced the maximum tariff to 100% while giving the U.S. President discretion to impose, waive or modify the measures if doing so is considered to be in the U.S. national interest. The bill has received broad bipartisan backing in the Senate but must still complete the legislative process before becoming law.
Unlike conventional sanctions aimed directly at Russia, the proposal uses what are often described as “secondary tariffs.” Instead of targeting Russian exports, it would penalize countries that continue importing Russian oil and gas by imposing steep duties on their exports to the United States. Supporters argue that such measures would make it economically costly for major energy importers to continue financing Russia’s energy sector.
India has emerged as one of Russia’s largest crude oil customers since Western sanctions reshaped global energy trade. Discounted Russian crude has enabled Indian refiners to reduce import costs, support domestic fuel supplies and increase exports of refined petroleum products. Any U.S. tariff targeting Indian exports because of these purchases could therefore introduce a new dimension of risk into India-U.S. trade relations.
China also remains one of Russia’s biggest energy customers and would be among the countries potentially affected if the legislation is enacted. Because China and India together account for a substantial share of Russia’s crude exports, the bill is designed to strike at one of Moscow’s most important sources of revenue.
The Government of India has responded cautiously, stating that it is closely monitoring developments. The Ministry of External Affairs has reiterated that India’s energy procurement decisions are guided by national energy security, market conditions and the objective of providing affordable supplies for Indian consumers. Officials have not indicated any immediate change in India’s purchasing policy.
Economists warn that if the proposal ultimately becomes law and is enforced, its impact could extend well beyond India and China. Higher tariffs could disrupt global supply chains, alter crude oil trade flows, increase shipping costs and contribute to renewed volatility in international oil prices. Export-oriented industries in affected countries could also face reduced competitiveness in the U.S. market if their products become significantly more expensive because of the additional duties.
At the same time, several analysts note that the legislation still faces political and procedural hurdles. It requires approval by both houses of Congress and would ultimately depend on presidential implementation. The inclusion of waiver authority also means that any future administration could use the tariffs as a diplomatic bargaining tool rather than applying them automatically.
Critics of the proposal argue that broad tariff powers could strain relations with strategic partners such as India while increasing costs for American businesses and consumers. Some lawmakers have also questioned whether tariffs are the most effective instrument for influencing global energy trade, warning that they could have unintended economic consequences without necessarily achieving the intended geopolitical objectives.
For India, the proposal highlights the increasingly complex balance between energy security, economic interests and strategic partnerships. While New Delhi continues to deepen cooperation with the United States across defence, technology and trade, it has consistently maintained that its energy purchases are driven by national interests rather than geopolitical alignments. Whether the proposed tariff legislation ultimately becomes law may significantly influence the future trajectory of U.S.-India trade relations and the global market for Russian energy.
