US Tariffs Loom: India's Exporters Anxious as New Law Threatens 100% Duties

Indian exporters are sounding the alarm after US President Donald Trump signed the 'Lindsey O. Graham Sanctioning Russia and Iran Act of 2026' on September 18. This new law empowers the US to impose duties of up to 100% on goods from countries, including India, identified as top buyers of Russian oil and gas. This immediate threat of crippling tariffs has cast a long shadow over India's crucial export sectors, raising major uncertainty for businesses reliant on the American market. The legislation is Washington's latest move to pressure Moscow over the ongoing Ukraine war, directly targeting nations that continue to fuel Russia's economy through energy purchases. India, which has become a significant importer of discounted Russian crude—accounting for over 51% of its oil imports in July 2026—finds itself in a diplomatic and economic tight spot. This comes on top of existing Section 301 tariffs of 10% already levied on Indian goods due to 'forced labor' concerns in July 2026, creating a complex and escalating trade environment. As Indian export bodies like FIEO and CITI voice deep concerns that such high tariffs could completely halt their shipments to the US, a vital trading partner, all eyes are now on Washington for clarity on tariff rates and product coverage. India's Ministry of External Affairs has firmly stated its commitment to energy security and has conveyed its determination to protect the nation's trade interests, hinting at potential countermeasures. The coming weeks will reveal the true extent of this new trade challenge and how India plans to navigate this complex geopolitical and economic landscape.