US Senate Bill Seeks 100% Tariffs on India, China for Russian Oil Purchases

The United States is turning the screws on Russian oil buyers. A bill introduced in the US Senate seeks to impose a 100% tariff on goods imported from countries that purchase Russian crude. India and China are squarely in the crosshairs.

The legislation, if passed, would fundamentally alter the calculus for nations that have continued energy trade with Moscow since the Ukraine war began. For New Delhi, which has sharply increased Russian oil imports, the stakes are high.

The proposed tariff mechanism

The bill targets five nations specifically: India, China, and three others. It proposes a 100% tariff on all goods exported from these countries to the US. That would effectively double the cost of Indian-made products in the American market.

Senators behind the move argue that punitive tariffs are necessary to choke off revenue streams that fund Russia's military operations. They see countries like India as enablers, buying discounted oil and undermining Western sanctions.

The White House has not yet taken a formal position. But the bill signals growing frustration in Washington with nations that have not joined the price cap mechanism on Russian crude.

India's delicate balancing act

New Delhi has maintained that its oil purchases are driven by energy security, not geopolitics. India imports over 80% of its crude needs, and Russian oil has come at a significant discount compared to global benchmarks.

Government sources say they are closely monitoring the development. "We are aware of the proposal and are assessing its implications," an official told reporters, requesting anonymity. The Ministry of External Affairs is understood to be in touch with counterparts in Washington.

Indian refiners have, in recent months, bought Russian oil at prices well below the G7-imposed cap of $60 per barrel. This has allowed Moscow to maintain export volumes despite sanctions.

For India, the tariff threat comes at a delicate time. Trade ties with the US are robust, with bilateral goods and services trade crossing $190 billion last year. A 100% tariff would hit sectors like pharmaceuticals, textiles, and engineering goods hard.

What it means for China

Beijing faces a similar, if not more acute, dilemma. China is the world's largest crude importer and has been Russia's biggest energy customer since the war began. Russian pipeline gas and seaborne oil now account for a significant share of China's energy mix.

Chinese state-owned refiners have been buying Russian ESPO crude at discounts of $5 to $10 per barrel below Brent. The proposed US tariff would target Chinese exports, from electronics to machinery, that feed into American supply chains.

China's foreign ministry has not yet commented publicly. But analysts expect Beijing to respond with retaliatory measures if the bill becomes law.

Reasons for India to stay calm

Some experts argue that New Delhi may have room to breathe. The bill is still in its early stages and would need to clear both chambers of Congress. The US midterm elections are approaching, and tariff legislation often gets bogged down in political horse-trading.

There is also the question of enforcement. The US would need to monitor and verify which countries are buying Russian oil and at what volumes. That is easier said than done, given the complexity of global oil trading and the use of intermediaries.

India has also been deepening its strategic partnership with the US on defence and technology. Washington may be reluctant to alienate a key Indo-Pacific partner over energy purchases.

What happens next depends on the bill's progress through the Senate. If it advances, New Delhi will have to decide whether to cap Russian oil imports or face a costly tariff war. For now, the Indian government is watching, waiting, and hoping diplomacy can defuse the threat.