After the US Senate passed sweeping Russia sanctions bill which could lead to the imposing of up to 100 per cent tariff on India, questions arose over the impact of this decision on the ongoing India-US trade deal.
White House National Economic Council director Kevin Hassett said it was up to the negotiators to determine if the new US legislation which targets Russian oil buyers will affects trade talks with India. "That's upto the negotiators. I can't give you insight into the ongoing (talks)," Hassett was quoted as saying by news agency ANI.
ALSO READ: 100% tariffs on India soon? US Senate clears bill for sanctions over Russian oil
{{/usCountry}}ALSO READ: 100% tariffs on India soon? US Senate clears bill for sanctions over Russian oil
{{/usCountry}}What is Russia sanctions bill
The US Senate on Friday voted 86-11 to pass the 'Lindsey O Graham Sanctioning Russia and Iran Act of 2026' which seeks to punish Russia and key buyers of its petroleum products, including India and China. Approving the legislation, the US claimed that such trade helps fuel the Ukraine war.
The new law allows US President Donald Trump to impose 100 per cent tariffs on goods from countries that are top five importers of Russian oil and gas. Among these are China, India, Azerbaijan, Hungary and Slovakia.
India has emerged as the second-largest importer of Russian crude. The reliance on Russia further increased as the West Asia war led to the closure of Strait of Hormuz, blocking supply from the Gulf. Russian oil, which is offered at discounted price, has helped Indian refiners manage costs and ensure stable fuel supplies.
Russian leaders and officials, including Russian President Vladimir Putin, oligarchs and financial institutions, could also face sanctions under this legislation.
The bill further extended the expiration date of the Iran Sanctions Act of 1996, to 2031. This act allows US to impose penalties on companies that invest in Iran's energy sector.
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The bipartisan bill has been named after Republican senator Lindsey Graham, who along with Democrat Richard Blumenthal championed the bill. Graham died on July 11 after returning from a trip to Kyiv. Following his sudden death, leaders pushed for the bill with renewed vigour to honour his legacy as Ukraine ally.
Lindsey Graham's sister Darline, who was appointed to his seat, said, "This bill forces those primary countries keeping Russia's economy afloat to make a simple yet critical choice – a choice between doing business with America or buying cheap Russian energy."
The House of Representatives, which reconvenes on August 31, will now take up the bill for approval. Democrats are wary of the bill, which they warn would give Trump new tariff powers at a time when he has put such levies at the centre of his trade policy.