US Trade Deal Could Shield India from 100% Tariff Under Russian Sanctions Law: Sources

India may be shielded from a 100% US tariff under the newly signed Graham Act if a trade deal is reached, sources told The Hindu - Business Line. The law, signed by President Donald Trump, allows tariffs of up to 100% on the largest buyers of Russian oil and gas, a list that includes India. The development comes amid growing uncertainty over further US trade action.

The Graham Act targets countries purchasing Russian energy, aiming to pressure Moscow. India has significantly increased its Russian oil imports since the Ukraine war began, benefiting from discounted prices. Sources indicate that a US-India trade agreement could provide an exemption or shield from these tariffs, though details remain unclear.

The potential tariff threat has loomed over India-US trade relations, with implications for global energy markets and diplomatic ties. If a trade deal is reached, it could ease tensions and provide certainty for Indian refiners. However, negotiations are ongoing, and the situation remains fluid. Global reactions are awaited as stakeholders monitor the next steps.