India has warned Washington that the Lindsey O. Graham Sanctioning Russia Act of 2026 could damage bilateral relations as New Delhi faces the prospect of tariffs of up to 100% on exports to the United States. The legislation authorizes President Donald Trump to impose ad valorem duties (charges based on an item’s value) on goods from any country among the five largest buyers of Russian crude oil or natural gas that continues making new purchases after enactment. India’s reliance on discounted Russian crude has grown since the Ukraine war began in 2022, with Russian supplies accounting for more than half of its crude purchases in June and July and over 40% in August, according to Kpler. New Delhi says energy security for its 1.4 billion people remains paramount and that it will continue diversifying supplies according to market conditions. The law, introduced in the Senate on September 16 and passed by the House a day later, also targets Iran. Its effect on Indian exports will depend on tariff rates, product coverage and the implementation timeline, the Global Trade Research Initiative said. Indian refiners are already selling fuel below market prices amid reduced Middle East supply caused by regional conflict, and losing Russian barrels could further squeeze margins while pushing up crude prices. China is also exposed, having bought roughly half of Russia’s crude exports by the end of August, compared with India’s 37%, Turkey’s 5% and the European Union’s 5%, according to the Center for Research on Energy and Clean Air. Analysts expect Trump to retain the tariff authority as leverage rather than use it immediately, while warning that China would resist and retaliate against measures that took effect. The threat comes as India and the United States negotiate a bilateral trade agreement, with Indian officials likely to seek confirmation on a possible exemption. Washington previously imposed a 25% punitive tariff on India in August of last year, lifting duties on Indian imports to 50%; those duties fell to 18% in February. India has not confirmed Trump’s claim that it agreed to stop buying Russian oil and purchase more from the United States and potentially Venezuela. Indian and regional analysts said the latest move could worsen public sentiment, constrain New Delhi’s economic choices and complicate the trade talks. Ukraine’s sanctions envoy separately said Wednesday that Russia could be forced to retreat from the war within six months if its oil revenues were halved, while urging Asian governments to close loopholes used to move Russian tankers and weapons components undetected.