100% U.S. Tariff Threat Puts India Trade at Risk

India faces a potentially significant trade challenge after the U.S. Congress passed legislation authorising President Donald Trump to impose tariffs of up to 100% on countries continuing major purchases of Russian energy. 
  
US President Donal Trump to impose up to 100% tariffs on countries buying Russian energy. Importantly, the tariff has not yet been imposed on India. 
If applied, Indian exports to the United States could become substantially more expensive, potentially affecting competitiveness across export-oriented industries. 
The U.S. remains India’s largest export destination, with Indian goods exports reaching $42.79 billion during April-August 2026. 
 
The measure could also disrupt ongoing India-U.S. trade negotiations, adding Russian oil purchases as another major issue alongside tariffs and market-access discussions. 
 
Energy presents an equally difficult equation. 
 
India, the world’s third-largest oil importer, argues that affordable and reliable energy for its 1.4 billion people must remain the priority. 
 
Abruptly reducing Russian supplies could increase procurement costs and pressure refiners. 
 
The consequences extend geopolitically. 
 
Russia says additional U.S. sanctions could complicate Ukraine peace efforts, while China has rejected what it describes as U.S. “long-arm jurisdiction.” 
 
For India, the challenge is therefore balancing energy security, export competitiveness, strategic autonomy and its critical economic relationship with Washington. 
 
New Delhi says it will take necessary measures to protect its trade and economic interests.