A mere signature won’t automatically trigger a 100% tariff on India

New Delhi : A bill authorizing the imposition of a 100% tariff on India has passed the US House of Representatives. It now awaits the signature of President Donald Trump. Once signed, the US government will gain the authority to impose full tariffs on four countries, including India. Notably, India’s name was specifically added to the bill through an amendment before it was introduced in the House. There is speculation that if the US imposes these tariffs on India, the prices of various commodities could rise.

In addition to India, the names of China, Türkiye, Azerbaijan, Hungary, the Slovak Republic, the United Arab Emirates, Singapore, Kazakhstan, and the Kyrgyz Republic were added to the ‘Lindsey O. Graham Sanctioning Russia and Iran Act of 2026’. However, these names were not included in the bill during the Senate vote. Significantly, the bill is named after Lindsey Graham a close associate of Trump who passed away recently who had strongly advocated for imposing tariffs on India.

The final hurdle for the bill was securing passage in the House of Representatives. In a recent vote, the bill passed with a margin of 262 to 159, garnering support from a large number of Democrats as well as the ruling Republicans. The bill aims to impose a 100% tariff on countries that assist in circumventing sanctions related to the purchase of crude oil from Russia.

When the bill originally reached the Senate, it did not list the specific names of these countries. The initial draft categorized five importers or entities purchasing oil from Russia separately. Currently, India and China import significant quantities of oil from Russia. Consequently, this bill could enable the imposition of a 100% tariff on both nations, a move likely to impact global relations in the future.

However, it is important to note that passage by the House of Representatives does not automatically trigger the imposition of a 100% tariff on India; rather, it grants the US President the authority to levy the full tariff.

Significantly, US midterm elections are scheduled for November, and the House had only four working days remaining before the recess when the vote took place. This move by the House follows months of negotiations regarding the sanctions package. Notably, this is not the first time the US has taken action against India involving tariffs.

India does not appear to be buckling under the pressure of this US decision. On Tuesday, Ministry of External Affairs spokesperson Randhir Jaiswal stated that India makes decisions regarding its energy needs with the interests of its 1.4 billion citizens in mind a stance it will continue to maintain. Sources indicated that while the situation is being monitored, it is clear the Indian government will not alter its policy on this matter and will continue purchasing oil from Russia.

However, should tariffs be imposed and India cease oil imports from Russia, it would need to seek alternative markets. If oil procurement becomes more expensive, domestic prices in India could rise. It is worth noting that Russia supplies affordable crude oil to numerous countries worldwide a fact the US has acknowledged on several occasions.

Report – Abhijit Tushar Bhatt (Political Editor)