IRGS2+ GS3

US Law Threatens 100% Tariffs Over Russian Oil Imports

The Hindu·2026-09-21

"US Law Threatens 100% Tariffs Over Russian Oil Imports"

Prelims Facts

  • •The US Russia Sanctions Act allows tariffs of up to 100% on countries importing significant volumes of Russian oil and gas.
  • •The Act was passed by the US Congress, unlike the earlier 50% tariff which was based on an Executive Order.
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Key Terms

Secondary tariff

a tariff imposed on a third country to penalise it for trading with a sanctioned state.

Strategic autonomy

India's foreign policy principle of maintaining independent positions free from alignment with any bloc.

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Study Note

BackgroundCore Concept

Background

Global trade governance has traditionally relied on the World Trade Organisation (WTO) to resolve disputes between countries. Over the past decade, this multilateral order has weakened. Major economies increasingly use unilateral domestic laws to enforce their preferences, bypassing WTO procedures. The United States has used Section 301 of the Trade Act of 1974 for this purpose. It allows the US President to impose tariffs on any country whose trade practices are judged unfair, without needing WTO approval. In mid-2026, the US applied a 10% forced-labour tariff on India and about 60 other countries under this provision, replacing an expired duty under Section 122 of the same Act.

India's energy import profile shifted sharply after the Russia-Ukraine conflict began. Before the conflict, Russian crude made up only about 2% of India's total crude oil imports. By 2026, that share had risen to roughly 50%, making Russia India's single largest crude supplier. This shift was driven by steep discounts on Russian oil after Western sanctions redirected it away from Europe. It lowered India's import bill and helped contain domestic fuel inflation. It also exposed India to secondary sanctions risk, since the US and its allies have consistently tried to reduce revenue flows to Russia.

The broader context is India's doctrine of strategic autonomy. India refused to join Western sanctions on Russia and increased its purchases of Russian crude guided by this principle. The G7 price cap of $60 per barrel on Russian crude, combined with cuts to Western shipping and insurance services, created the discount that made Russian oil attractive. India's position has since drawn sustained diplomatic and now legislative pressure from the United States.

The Topic Explained

The mechanism at the centre of this dispute is the secondary tariff. A secondary tariff penalises a third party, not the original sanctioned state, for continuing to trade with it. Instead of directly restricting Russia, the US uses this tool to raise the cost of doing business with Russia for countries like India. This is distinct from a primary sanction, which targets the sanctioned country itself. Secondary measures shift the burden onto neutral or non-aligned buyers.

The Lindsey O. Graham Sanctioning Russia and Iran Act takes this pressure to a new level. Once signed into law, it allows the US President to impose tariffs of up to 100% on countries that continue buying Russian oil. Stacked on the existing 10% forced-labour tariff, India's cumulative tariff exposure on its exports to the US could reach around 110%. …

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Related PYQs

2023GS1 Prelims

Consider the following statements about G-20:

1.The G-20 group was originally established as a platform for the Finance Ministers and Central Bank Governors to discuss the international economic and financial issues.

2.Digital public infrastructure is one of India's G-20 priorities.

Which of the statements given above is/are correct?

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
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Practice MCQs

IRmedium

Consider the following statements regarding the US Russia Sanctions Act:

1.It authorises the US President to impose tariffs of up to 100% on countries importing significant volumes of Russian oil and gas.

2.Being a law passed by the US Congress, any presidential waiver under it requires written justification to Congress.

Which of the statements given above is/are correct?

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
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IRhard

Match List-I (tariff/measure on Indian exports to the US) with List-II (its stated basis) and select the correct answer using the code given below:

List-I

A.50% reciprocal tariff

B.10% tariff

C.50% tariff on steel and aluminium

D.Up to 100% tariff

List-II

1.Section 232 national security provision

2.US Russia Sanctions Act

3.Executive Order on Russian oil imports

4.Forced-labour concerns

AA-3, B-4, C-1, D-2
BA-1, B-2, C-3, D-4
CA-4, B-3, C-2, D-1
DA-2, B-1, C-4, D-3
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IRmedium

With reference to the difference between an Executive Order and an Act of the US Congress in the context of tariff policy, which one of the following statements is correct?

AAn Executive Order carries greater legal permanence than a Congressional Act
BA Congressional Act can be withdrawn unilaterally by the sitting President at any time
CAn Executive Order can be rescinded by the President who issued it without Congressional approval
DBoth instruments require ratification by two-thirds of the US Senate
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IReasy

Consider the following statements about the G-20 grouping:

1.It was originally established as a platform for Finance Ministers and Central Bank Governors to discuss international economic and financial issues.

2.Its scope has since expanded to include forums such as Trade Ministerial meetings.

Which of the statements given above is/are correct?

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
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IRmedium

The exemption clause often included in US secondary sanctions legislation targeting buyers of Russian energy typically applies to countries that:

AImport less than a specified share of Russia's natural gas while actively reducing such imports
BAre members of the G-20 grouping
CHave a bilateral free trade agreement with the United States
DImport Russian oil exclusively through the Strait of Hormuz
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