The story so far:
President Donald Trump has signed into law the Lindsey O. U.S. The Indian government’s concerns over the tariffs have so far gone unheeded. The initial purpose of the Act — proposed by the late Senator Lindsey O. Graham and named after him — was to cut off financing for Russia so as to choke its funding of its war with Ukraine. To this end, the Act provides for sanctions to be levied on Russia’s top leadership and its biggest energy customers. No. President to restrict imports or impose tariffs if an investigation finds that foreign goods threaten national security. Historical data, however, show that India has chosen to comply with U.S. pressure to reduce oil imports from countries such as Venezuela, Iran, and Russia. If India again cuts down on Russian oil imports, this could have serious ramifications for the supply and price of fuel within India. For Indian citizens, this could translate into more fuel price hikes. For the government, such hikes would be politically unpalatable since there are several key State elections next year. The Act includes a provision for a waiver of tariffs. The U.S.
Graham Sanctioning Russia and Iran Act, 2026 , which could see tariffs of up to 100% being levied on imports from India if it continues to import oil from Russia. Russia accounted for more than 51% of India’s crude oil imports in July 2026, according to the latest data. Scaling this back drastically within 30 days, at a time when passage through the Strait of Hormuz is still constrained, will likely be impossible for India. This includes tariffs imposed under Section 301 of the Trade Act of 1974, which allows the United States Trade Representative to investigate and retaliate against foreign trade practices that harm American commerce, and Section 232 of the Trade Expansion Act of 1962, which authorises the U.S. At a time when the Strait of Hormuz is constrained, and oil prices are again comfortably above $100 a barrel, India will likely find it very expensive to look for newer sources of oil.
This Act, therefore, has significant implications for India with regard to its export ambitions and energy security.
The second criterion for imposition of tariffs is whether a country was among the top five nations “facilitating Russian oil sanctions evasion during the 12 months preceding the date of the enactment of the Act”. India runs a much lower risk of qualifying for tariffs under this criterion, as Indian oil marketing companies have repeatedly said that all their purchases have been made without violating sanctions. The law clearly states that an import tariff imposed under this Act “shall be in addition to any other duty” levied on any good. President can waive the tariffs once he has submitted to Congress a certification in writing that the waiver “is in the national interests of the U.S.” and a report explaining the basis for the certification. The other way out is if Russia signs “a peace agreement that is accepted by the free and independent Government of Ukraine” and ceases “all military hostilities against and any activities to overthrow, dismantle, and subvert the Government of Ukraine”.
