US House Passes Bill That Could Put 100 Percent Tariffs on Russian Oil Buyers

The US House of Representatives has passed a bill that would let President Donald Trump put import taxes, called tariffs, of up to 100 percent on countries that buy Russian oil and gas. The bill now goes to Trump to sign. India is one of the countries most at risk, because it buys close to one third of its oil from Russia. New Delhi says it has told Washington what this could mean.

Russian oil is cheaper for India. After Russia invaded Ukraine in 2022, Western markets stopped buying much of it, so Indian refineries bought it at a discount. Russia supplied 30.3 percent of India's oil in the 2026 financial year, worth $40.8 billion of India's $134.7 billion import bill. The Council on Energy, Environment and Water estimates this has saved India about $12.6 billion.

But replacing this oil is hard. India imports more than 88 percent of its oil. Its emergency reserves hold only 9 to 10 days of imports, while Japan has about 200 days. Other oil would cost more to buy, ship and insure.

The bill does not tax Russian oil coming into India. Instead, it threatens tariffs on Indian goods sold to the United States. So the harm would hit exporters, the rupee (India's money), refinery profits and trade.

Analysts expect Trump to keep the new power as a bargaining tool, while India will likely ask for an exemption. For New Delhi, the question is how much the Russian discount is worth when the risk to its American sales is added up.