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The wider objective is to reduce the flow of money supporting Russia's economy and military campaign.

The legislation gives the US President the authority to impose tariffs of up to 100% on goods imported from countries that are among the top five buyers of Russian oil or natural gas. India is one of the world's biggest buyers of Russian crude, alongside China. The measure is designed to make countries choose between continuing to buy discounted Russian energy and maintaining access to the US market.

Darline Graham, the late senator's sister who was appointed to his seat, said the legislation would force countries supporting Russia's economy to make a choice. “This bill forces those primary countries keeping Russia’s economy afloat to make a simple yet critical choice – a choice between doing business with America or buying cheap Russian energy,” she said

India's purchases of discounted Russian crude have increased significantly since the Russia-Ukraine war began in 2022. Russia was never a major oil supplier for India but after Moscow’s war with Ukraine began and Europe stopped buying Russian crude, it became available at huge discounts for India.

The shift has helped Indian refiners lower crude costs and secure supplies despite disruptions in global energy markets. The reliance on Russian oil has become even more important amid disruptions to shipping through the Strait of Hormuz, which have affected energy supplies from the Middle East. India has repeatedly maintained that its energy purchases are guided by national interest, energy security and the need to ensure affordable and reliable supplies.

The proposed legislation comes after Washington had already imposed additional charges over India's purchases of Russian oil in the past. However, the earlier measures did not immediately discourage Indian refiners from buying Russian crude. With the conflict in the Middle East disrupting energy markets and creating uncertainty around supplies through the region, Russian crude remained an important source for Indian refiners. India's imports of Russian oil rose 34% in June 2026 alone.

A 100% tariff would make Indian goods significantly more expensive for US importers if it were imposed broadly. The impact could be particularly significant for export-oriented sectors such as engineering goods, pharmaceuticals, chemicals, textiles and auto components.

US buyers could look for alternative suppliers in other countries if Indian products become substantially more expensive. Indian exporters could consequently face weaker demand, tighter margins or the need to absorb part of the additional cost to remain competitive.

The threat of such tariffs could also encourage Indian companies to diversify their export markets and increase pressure on policymakers to negotiate with Washington.