The India Decade

House Democrats split over naming India in US bill targeting Russian oil

A proposed amendment to a major sanctions bill would make New Delhi eligible for punitive duties, while a rival proposal seeks to scrap the tariff penalties entirely.

By The India Decade

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cargo ship carrying oil at sea (file image)
cargo ship carrying oil at sea (file image) · “Indian Railways Oil Tanker” by 2006nishan178713 (CC BY-SA 4.0) via Wikimedia Commons

Tariff fight in the House

US lawmakers are fighting over whether to target India and other major buyers of Russian oil with punitive tariffs of up to 100%, with rival amendments submitted as a major sanctions bill moves to the House of Representatives.

An amendment filed by Democratic Representative Steny Hoyer seeks to explicitly name India, China, Turkiye, Azerbaijan, Hungary, Slovakia, the UAE, Singapore, Kazakhstan, and Kyrgyzstan as countries eligible for the duties. Under the Senate version of the bill, the countries were not named directly, but were instead described as Russia's top five energy buyers.

At the same time, another senior Democrat is trying to kill the tariff threat entirely. Representative Gregory Meeks, who has warned against handing President Donald Trump broad tariff-levying powers, introduced an amendment to scrap the entire section of the bill that authorises these secondary tariffs.

The proposals, made public by the House Rules Committee on Monday, highlight a growing battle in Washington over how to stop Moscow from funding its war in Ukraine through crude oil sales.

Timeline and pressure

The underlying legislation, the Lindsey O. Graham Sanctioning Russia and Iran Act, passed the Senate on 7 August with an overwhelming 86-11 majority. It targets Russia's leadership, its energy sector, and the "shadow fleet" of tankers used to bypass existing Western curbs on oil deliveries.

Time is short for lawmakers. The House has only four working days remaining before it breaks for recess ahead of the midterm elections on 3 November.

If the bill passes with the tariff mechanism intact, it would not instantly trigger a 100% duty on Indian goods. Instead, it would give President Trump the authority to impose those tariffs at his discretion.

Because the United States is one of India's largest export markets, any such move could severely hit major Indian export sectors. Industries such as pharmaceuticals, textiles, engineering goods, and gems and jewellery would find themselves highly exposed to trade penalties.

Strategic balancing act

India has consistently defended its purchases of discounted Russian crude as a matter of national energy security. New Delhi has maintained that its actions comply with existing international and American sanctions. However, the proposed legislation represents a shift in Washington, turning a diplomatic disagreement into a direct threat to India's access to the US market.

The debate has also split Democrats on the scope of presidential power. While Hoyer wants to name India and others, Meeks is leading a group of three other co-sponsors to strip the tariff authority out of the bill. Meeks has also proposed tighter limits on the president's ability to waive sanctions, suggesting that any waiver must be limited to 90 days and granted only if it is "vital to the national security of the United States."

Additionally, Meeks' amendments include a proposal to authorise $15 billion in direct loans to Ukraine to finance the procurement of defence articles and services, tying the economic squeeze on Russia's oil buyers directly to military support for Kyiv.

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Key numbers

Senate vote on sanctions bill
86-11
Source: US Senate voting record
Proposed loan for Ukraine defence
$15 billion
Source: Proposed amendment by Representative Gregory Meeks
Working days left before House recess
4 days
Source: House of Representatives legislative calendar

In this story

  • India — Target of the potential secondary tariffs due to its imports of Russian oil.

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