Commodities September 23, 2026 11:52 PM

US and India Confer on Sanctions Law as New Delhi Raises Concerns Over Tariff Provisions

Discussion follows enactment of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 and strains over energy trade with Russia

By Priya Menon
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US Secretary of State Marco Rubio and Indian Foreign Minister S. Jaishankar met in New York to discuss potential measures against countries engaging economically with Russia and Iran, while India reiterated concerns about a recently enacted US sanctions bill that could trigger steep tariffs on nations importing Russian crude.

US and India Confer on Sanctions Law as New Delhi Raises Concerns Over Tariff Provisions
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Key Points

  • US Secretary of State Marco Rubio and Indian Foreign Minister S. Jaishankar met in New York to discuss potential sanctions against states trading with Russia and Iran.
  • The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 requires tariffs of up to 100% within 30 days on imports from major buyers of Russian crude or those making new purchases after enactment.
  • India, a major buyer of discounted Russian oil, has argued its purchases stabilise global supply and keep domestic prices lower; past tariff actions by the US have already affected bilateral trade.

Overview

US Secretary of State Marco Rubio and Indian Foreign Minister S. Jaishankar met on Wednesday in New York to discuss possible US actions targeting states that maintain economic ties with Russia and Iran. The conversation came in the wake of a new law signed by President Donald Trump last week, the "Lindsey O. Graham Sanctioning Russia and Iran Act of 2026," which was approved by the US Congress to increase economic pressure on Russia in response to its invasion of Ukraine that began in early 2022.

What officials said

The State Department said Rubio and Jaishankar "discussed sanctions that could be leveled against states that engage economically with Russia and Iran" in a statement issued after the meeting. On social media, Jaishankar wrote on X that he "reiterated India’s interests and concerns with regard to SRIA."

Key provisions of the new law

The law directs President Trump to impose tariffs of up to 100% within 30 days on all goods imported into the United States from the five largest importers of Russian crude oil or gas. It also covers any country that knowingly made new purchases of Russian oil or gas 30 days after the law was enacted, as well as countries identified among the top five assisting Russia to evade sanctions.

India's position and recent trade actions

India is one of the largest purchasers of Russian crude. Following Russia's invasion of Ukraine, New Delhi significantly increased its purchases of discounted Russian oil. Those larger purchases were cited as a contributing factor when President Trump imposed tariffs of as much as 50% on Indian goods in August 2025, among the steepest duties applied to any country.

In February, Trump rescinded those duties, citing what he described as India’s commitment to halt purchases of Russian oil. New Delhi did reduce Russian crude imports only briefly in early 2026, but purchases subsequently rose again, particularly after a supply disruption that followed the US-Israeli war on Iran.

India's justification and analyst views

Indian officials have argued that a large population and a growing economy create a need for affordable energy supplies. Indian analysts quoted by officials have maintained that the country’s purchases of Russian oil were not financing the war in Ukraine, but instead helped stabilise global supplies and restrained domestic fuel prices.

Diplomatic implications

New Delhi has previously told Washington that the imposition of new US measures, including tariffs tied to the purchase of Russian oil, could affect bilateral relations. During the recent meeting, India reiterated those concerns as the two sides discussed the operational and diplomatic elements of implementing the new legislation.

Outlook

The talks between Rubio and Jaishankar underline the tension between US efforts to tighten economic pressure on Russia and India’s energy security considerations. The law’s tariff mechanisms and the criteria for identifying targeted countries are central to the ongoing diplomatic dialogue.

Risks

  • Potential imposition of tariffs up to 100% could disrupt trade flows and affect exporters to the US, particularly in sectors exposed to tariffs such as manufacturing and consumer goods.
  • Heightened diplomatic friction between the US and India over energy policy and trade measures could influence bilateral cooperation in areas like defence procurement and supply chains.
  • Volatility in global energy supplies, exacerbated by conflicts such as the US-Israeli war on Iran, may drive further fluctuations in oil purchases and complicate efforts to align sanctions policy with energy security needs.

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