New Delhi – A fresh wave of trade friction is surfacing between the United States and India over India’s continued procurement of Russian crude. Lawmakers in Washington are drafting legislation that would dramatically raise economic penalties on any country that sources oil from Moscow.

The draft bill proposes granting the U.S. President the power to levy tariffs as high as 100 % on goods arriving from nations deemed to be supporting Russia’s energy sector. Such a measure aims to choke off revenue streams that fund the Kremlin’s war effort.

For India, the stakes are high. Russian oil remains a cornerstone of the country’s energy mix, helping bridge supply gaps and keep fuel prices in check. Recent talks between Prime Minister Narendra Modi and President Vladimir Putin underscored a mutual desire to deepen strategic and commercial ties, especially in the energy arena.

Potential Ripple Effects

Should the maximum tariff be enacted, the repercussions would extend well beyond a simple price hike on Russian oil. Indian exporters shipping products to the United States could see their goods become prohibitively expensive, threatening market share and amplifying existing trade tensions.

Legislative Outlook

The proposal is still navigating the complex corridors of Congress. Its final shape—and whether it will ever become law—depends on forthcoming debates, amendments, and bipartisan negotiations. In the meantime, India must juggle its urgent energy needs against mounting U.S. pressure to curtail Russian oil imports.