India still faces up to 100% US tariff risk after House panel blocks Russia bill amendments

Washington’s debate over the new Russia sanctions package took an unexpected turn on Monday when a House Rules Committee vote effectively shut the door on two very different amendments. One amendment, pushed by Democratic leader Steny Hoyer, tried to list specific nations – China, India, Turkey, Azerbaijan, Hungary, Slovakia, the UAE, Singapore, Kazakhstan and Kyrgyzstan – as candidates for a full‑blown, 100 % tariff on oil tied to Russia. The other, spearheaded by Rep. Gregory Meeks, aimed to scrap Section 113 altogether, the very clause that would hand the president the power to levy those massive duties.

At the heart of the bill – formally known as the Lindsey O. Graham Sanctioning Russia and Iran Act – is a broad effort to choke the revenue stream that Moscow allegedly uses to fund its war in Ukraine. The Senate had already given it a comfortable 86‑11 vote, but the measure still needs the House’s blessing before it can land on President’s desk.

What makes this a headache for India is the bill’s language about “the five largest importers of Russian oil and gas by volume.” Although the Senate version never named any country, the Hoyer amendment would have explicitly put India on the list, exposing Indian importers to duties that could reach 100 % – essentially a ban on the affected cargoes.

Meeks, on the other hand, isn’t a fan of giving the executive branch such sweeping power. His amendment, backed by two co‑sponsors, would have deleted Section 113, stripping the president of the authority to impose secondary tariffs on any of Russia’s trade partners. He also floated a separate tweak that would let the president grant 90‑day waivers – renewable in 90‑day blocks – if a particular sanction was deemed “vital to U.S. national security.” And, in a nod to Ukraine’s war effort, he suggested a $15 billion loan package for Kyiv’s defense purchases.

When the committee voted, the Hoyer amendment fell short, while Meeks’ proposal to eliminate the tariff section survived the hurdle. The outcome means the 100 % tariff provision remains intact, and India, along with the other named nations, stays on the radar for possible punitive duties.

Time is now ticking. The House has roughly four working days left before it breaks for the pre‑election recess in early November. If the chamber lets the bill sail through, the president could, in theory, slap a full‑scale duty on any oil that passes through Indian ports from Russia. Such a move would hit India’s energy imports hard and could ripple through global oil markets.

For Indian businesses, the news is a reminder to keep an eye on policy shifts across the Atlantic. While the immediate risk may still be uncertain, the legislative framework that permits such a steep tariff is very much alive, and any further amendments or diplomatic push‑backs could come swiftly.

In short, the House panel’s decision leaves India exposed to a tariff scenario that could double the cost of Russian oil imports – a development that policymakers and trade strategists in New Delhi will be watching very closely.